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Additional federal loan/grant opportunities

| April 27, 2020

Additional federal loan/grant opportunities

On Friday, April 24, 2020 the president signed a new relief bill – Paycheck Protection Program and Health Care Enhancement Act (Phase 3.5) – to provide additional funding to key programs in the CARES Act, including the Paycheck Protection Program (PPP) and the Small Business Economic Disaster Loans program.

If you are interested in applying for the Payment Protection Program or the Small Business Economic Injury Disaster Loans, ready all the required information now! Once the application process is open, you’ll be ready to apply. You also may want to consider applying to multiple banks. The Small Business Owners Guide may be helpful in making decisions. During the last application round, funding was exhausted within days.

Appropriations are as follows:

Paycheck Protection Program (PPP) – $321 billion in funding – $60 billion set aside for small, midsize and community lenders.

Disaster Loans – $50 billion for the Disaster Loans Program and an additional $10 billion for Economic Injury Disaster Loans (EIDL) grants. You can also call 1-800-659-2955.

Public Health and Social Services Emergency Fund – $75 billion for Health and Human Services (HHS) Hospital and Provider Grants to support the related COVID-19 expenses and lost revenue.

Testing – $25 billion for the HHS Public Health and Social Services Emergency Fund for expenses related to the research, development and expansion of COVID-19 testing.

  • $11 billion for employers, localities, territories, tribes and states to purchase and analyze COVID-19 tests.
    • $2 billion to states in line with the Public Health Emergency Preparedness grant formula, ensuring every state receives funds;
    • $4.25 billion related to number of COVID-19 cases; and
    • $750 million in coordination with the Indian Health Service.
  • $1.8 billion to the National Institutes of Health (NIH) to further research, development and implementation of testing; additional research, development and implementation of rapid testing; and for partnership with other entities to research develop and implement these activities.
  • $1 billion to the Centers for Disease Control (CDC) for activities such as lab expansion, contact tracing, surveillance of public health data and analytics of the above.
  • $1 billion for the Biomedical Advanced Research and Development Authority for advanced research, manufacturing, production and purchasing of COVID-19 tests and other related supplies.
  • $22 million for the Food and Drug Administration (FDA) to support diagnostic, serological, antigen and other tests and related administrative activities.
  • $825 million for community health centers and rural health clinics.
  • Up to $1 billion may be used to cover costs for testing the uninsured.

 

CMS reevaluates Accelerated Payment Program and suspends Advance Payment Program

EFFECTIVE IMMEDIATELY – The Centers for Medicare and Medicaid Services (CMS) are reevaluating the amounts it will pay under its Accelerated Payment Program and suspended its Advance Payment Program to Part B suppliers.

CMS originally implemented these temporary loan programs to ensure providers and suppliers had the resources needed to combat COVID-19. The programs are typically implemented to provide emergency funding and address cash flow issues during a public health emergency or presidentially declared disaster.

The announcement was made after successfully paying more than $100 billion to health care providers and suppliers through the Accelerated Payment and Advanced Payment programs. More than 21,000 applications were approved, totaling $59.6 billion to Part A providers (includes hospitals). For Part B suppliers, including physicians, nonphysician practitioners and durable medical equipment suppliers, almost 24,000 applications were approved for $40.4 billion in payments.

These are loan programs and recipients are usually required to pay back the funding within one year or less, depending on the provider/supplier type. CMS will not accept any new applications for the Advance Payment Program and will reevaluate all pending and new applications for the Accelerated Payment program.

View the updated Accelerated and Advance Payment Programs fact sheet for more information. The Advocacy Council – we have you covered!

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