The Guam Memorial Hospital qualifies for the U.S. Small Business Administration's renewed Paycheck Protection Program under the CARES Act, according to Sen. Amanda Shelton, citing a rule change in the program.
“We’ve heard so much about the CARES Act Paycheck Protection Program (PPP). Hundreds of Guam businesses have benefited from it and hopefully with the infusion of more cash into the program on Friday hundreds more will also do so. The real game changer for all the people of Guam is that Guam Memorial Hospital may be able to utilize the PPP also,” Shelton said.
The opportunity was announced in the past 48 hours through a formal process known as an SBA Interim Final Rule Change. The change states ongoing disaster government owned hospitals can seek reimbursement for payroll costs from SBA. Government owned hospitals were not eligible for direct payroll reimbursements in previous disasters.
“I know how diligent our Governor and her team have been throughout this crisis,” Shelton said, “and I have no doubt that together with the GMHA Board of Trustees they will quickly come to a determination if this is an opportunity Guam can avail itself of.”
In the private sector the amount of PPP coverage is determined by a formula that takes into account average payroll costs over the prior 12 months. It may be possible that GMHA will be eligible for millions in PPP coverage.
The SBA Interim Final Rule Actions states, "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 percent 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."