The AHA today urged the Department of Treasury and Federal Reserve to implement a Mid-Sized Business Loan Program quickly and in a manner that ensures such access will be attainable for hospitals.
“The enormous expense of treating COVID-19 patients coupled with the forgone income from hundreds of thousands of cancelled surgeries and other elective procedures has created multiple burdens that will likely threaten the viability of many of our nation’s hospitals,” AHA wrote. “Therefore, access to the low-cost loans available under Section 4003(b)(4) of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) is an essential component of federal support for hospitals.”
Among other areas, AHA said loan eligibility should extend to hospitals of all ownership types, including municipal, county and other public hospitals, and that employees of an applicant’s corporate affiliates should not be included in determining eligibility. In addition, AHA urged Treasury to provide a minimum no-payment period of 12 months after a loan is made, and that the maximum term, if one is imposed, be up to 10 years.