Rural Victory: Governmental Hospitals Eligible for Paycheck Protection Program

New Guidance: Governmental Owned Rural Hospitals Eligible for the PPP


The United States Treasury and Small Business Administration (SBA) has provided long fought for guidance on the Paycheck Protection Program (PPP). The newly released guidance has clarified that governmental owned facilities are eligible for PPP loans, if they meet the conditions below. Working with our rural champions in Congress and the Trump Administration, NRHA and NRHA members advocacy has led to this important clarification. Make sure to get your applications in now! Details of the clarification:

Is a hospital owned by governmental entities eligible for a PPP loan?
A hospital that is otherwise eligible to receive a PPP loan as a business concern or nonprofit organization (described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code) shall not be rendered ineligible for a PPP loan due to ownership by a state or local government if the hospital receives less than 50% of its funding from state or local government sources, exclusive of Medicaid. The Administrator, in consultation with the Secretary, determined that this exception to the general ineligibility of government-owned entities, 13 CFR 120.110(j), is appropriate to effectuate the purposes of the CARES Act.

Our advocacy worked. SBA has opened up the PPP, which has just been replenished with new funds to allow small, publicly owned hospitals to apply. We encourage everyone to apply as soon as possible. You can find the official interim final rule language here. Thank you to all of our NRHA rural advocates!