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 House to Consider Small Business Aid Package, LT/PAC Providers May Be Eligible

The U.S. House of Representatives is scheduled to meet on April 23 to consider legislation to replenish the Small Business Administration’s (SBA’s) depleted Paycheck Protection Program (PPP) following Senate action on April 21 to approve what is the fourth bill to provide COVID-19-related relief to small businesses and providers.

The $484 billion deal refills the PPP by $310 billion. The House is scheduled to meet Thursday at 10 a.m. to debate and then vote on the legislation. President Trump has signaled he will immediately sign the legislation into law.

The American Health Care Association/National Center for Assisted Living (AHCA/NCAL) provided these two links to help providers refresh on the legislation: 

Final Text as agreed to in the Senate

Paycheck Protection Program Increase Act of 2020

The PPP loan program is for certain employers. Congress created the PPP by which small businesses and certain other employers could obtain loans through a new program administered by SBA. Generally, an eligible loan applicant could have no more than 500 employees. Eligible applicants would have to certify that the amounts borrowed would be used to do such things as maintain payroll and make rent or mortgage payments.

Loans also could not exceed the lesser of $10 million or 2.5 times the applicant’s average payroll costs during the previous one-year period. The bill also provides that loan amounts spent on payroll and certain other costs for eight weeks following loan origination would be forgiven, AHCA/NCAL said.

The association told providers that there is another path to obtaining loans regardless of how many employees a business has. 

Additionally, a business can qualify for the Paycheck Protection Program as a small business concern if it met both tests in SBA’s ‘alternative size standard’ as of March 27, 2020: (1) maximum tangible net worth of the business is not more than $15 million; and (2) the average net income after federal income taxes (excluding any carry-over losses) of the business for the two full fiscal years before the date of the application is not more than $5 million,” AHCA/NCAL said.

The association said it is not known how many long term and post-acute care providers would fall under this definition to qualify, but they encouraged providers to reach out to lender institutions and inquire.

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