November 04, 2020
Important Updates Economic Relief during the COVID-19 Pandemic
Phase 3 Provider Relief Funding: Application Deadline, November 6
In October, HHS announced $20 billion in new funding for providers on the frontlines of the COVID-19 pandemic. The application deadline is quickly approaching on November 6, 2020. Under this Phase 3 General Distribution allocation, providers that already received Provider Relief Fund payments can apply for additional funding that considers financial losses and changes in operating expenses caused by the coronavirus. Previously ineligible providers, such as those who began practicing in 2020, are invited to apply, and an expanded group of behavioral health providers confronting the emergence of increased mental health and substance use issues exacerbated by the pandemic will also be eligible for relief payments.
Eligibility and additional information
Updated Terms for Main Street Lending Program
The Federal Reserve established the Main Street Lending Program to support small and medium-sized for profit businesses and nonprofit organizations that were in sound financial condition prior to the COVID-19 pandemic. This program was appropriated under the CARES Act and enables up to $600 billion in new financing for businesses.
The Program operates through five facilities: the Main Street New Loan Facility (MSNLF), the Main Street Priority Loan Facility (MSPLF), the Main Street Expanded Loan Facility (MSELF), the Nonprofit Organization New Loan Facility (NONLF), and the Nonprofit Organization Expanded Loan Facility (NOELF). The minimum loan size for three Main Street facilities available to for-profit and non-profit borrowers has been reduced from $250,000 to $100,000 and the Treasury Department is indicating that the fees have been adjusted to encourage the provision of these smaller loans. Term sheets for each facility and Frequently Asked Questions (FAQs) providing more information regarding eligibility and conditions were updated October 30, 2020 and can be found here.
New information on Paycheck Protection Program Loan Forgiveness
Last week, the U.S. Small Business Administration issued a newly released factsheet on loan forgiveness under the Paycheck Protection Program for borrowers. This factsheet provides borrowers, including physician practices, with information on how to apply for loan forgiveness under the Paycheck Protection Program. Access the factsheet here.
Check the SBA site frequently for updated information on the PPP.
ASA’s economic relief resources