MGMA Government Affairs developed two new resources to inform medical groups of available financial assistance opportunities set forth in the CARES Act, which was signed into law on March 27, 2020. The resources are organized by medical group size because the U.S. Small Business Administration (SBA)’s Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) are only available to businesses with 500 employees or less. Please note that financial lenders should start accepting applications for PPP loans today, although it has been reported that not all lenders are prepared. In the meantime, SBA has supplied a sample application form for applicants to understand what will be requested of them.
Resource for medical groups with less than 500 employees: The CARES Act allocated money to fund the PPP loans and EIDLs. Loans under the PPP can be forgiven if the employer keeps their employees on the payroll for eight weeks after the loan origination date. EIDL loans are available to businesses who have suffered substantial economic injury. Small businesses who have applied for EIDL loans can receive an advance of $10,000 ("emergency EIDL grants") within three days after the SBA receives their application. Please review MGMA’s resource for more details on both programs.
Resource for medical groups of all sizes: CMS’s Accelerated and Advance Payment Program (APP) and funds distributed from the “Public Health and Social Services Emergency Fund” are two available financial assistance options. The APP provides a quick mechanism for healthcare entities to obtain an accelerated cash flow, which is subject to repayment – funding through this mechanism can be accessed now. Little is known yet on how the $100 billion from the emergency fund will be distributed, but these funds are intended to reimburse eligible healthcare entities for healthcare related expenses and lost revenue stemming from COVID-19.