Tipton Secures PPP Eligibility for Rural Hospitals

Statement

After weeks of outreach from Congressman Scott Tipton (CO-03), the US Department of Treasury released guidance making certain that rural hospitals are eligible to receive forgivable loans through the Small Business Administration's (SBA) Paycheck Protection Program (PPP). Due to the technical language in the CARES Act, it was largely uncertain if some hospitals, particularly rural hospitals that are owned by county and district governments under state law, would be eligible for loan forgiveness. Tipton identified this potential problem early on and through several letters to the administration and testimony before the House Small Business Committee, sought for Treasury and SBA to clarify the guidance on PPP loans to rural hospitals.

"Medical staff in rural hospitals have been on the front lines of this pandemic, serving communities across the Third District. Many of these rural hospitals have taken a significant revenue hit because of the pandemic as they are forced to limit their scope of care, putting their financial futures in jeopardy," said Tipton. "The last thing healthcare workers should have to worry about right now is losing their paychecks due to bureaucratic uncertainty. I am thankful Treasury listened to my calls and acted quickly to make sure rural hospitals are eligible to receive critical PPP loans so their heroic employees can continue to serve their communities."

In its updated guidance, Treasury explicitly qualifies hospitals that receive less than 50 percent of their funding from state and local governments, excluding Medicaid payments, as eligible to receive PPP loans and have those loans forgiven so long as they adhere to the other criteria set by SBA and Treasury.

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