Hospital Emergency Loan Program To Help Financially Strained Hospitals
Today Governor Wolf announced the creation of a new loan program, the Hospital Emergency Loan Program (HELP), that will provide short-term financial relief to Pennsylvania’s hospitals as they prepare for the growing surge of individuals infected with COVID-19 and the economic impact expected as a result of this surge. This loan will provide hospitals with immediate financial support for working capital to ensure they have sufficient personnel, equipment, and personal protective equipment.
The funding was dispersed by the Pennsylvania Infrastructure Investment Authority and will be administered by the Pennsylvania Department of Community and Economic Development through the Pennsylvania First Program (PA First).
Pennsylvania health care facilities licensed as hospitals by the Pennsylvania Department of Health under the Health Care Facilities Act of 1979 that are eligible to receive federal grant funding through the CARES Act are eligible for HELP. The maximum loan size is $10 million per hospital, at an interest rate of 0.5 percent.
HELP will allow hospitals to take responsive action now until funding through the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law on March 27, 2020, is dispersed completely, with the goal of easing the financial strain of the pandemic and smoothing the transition back into regular health care operation. Permitted expenses under HELP will mirror those under the CARES Act, allowing hospitals to close out their loan with CARES funding once it is received.
Applications will be available on the Pennsylvania Department of Community and Economic Development’s website starting at 10:00 am on April 13 and will be available through April 20. The costs must be incurred between March 1, 2020 and September 1, 2020.
