COVID 19 Loan and Grant Programs

Click on the reference for more information.

Loan and Grant Programs

April 10, 2020
- All facilities, all providers participating in Medicare FFS
- Payments not loans
- Based on 2019 Medicare revenue
  - Medicare revenue NPI/480,000,000,000 x 30,000,000,000
- Paid to individuals through normal Medicare payment channels

““We are experiencing cash flow problems due to the COVID-19 crisis.”

Get paid now for work done later
- Individual NPI number
- 3 months Medicare fees based on 2019 activity
- 7 day turnaround from date application received
- Repayment begins 120 days after payment received, new claims offset
- Must be paid back within 210 days.
Business Assessment
- Improves liquidity
- Prepayment for work is always a good business move
- Fulfills prime directive of cash conservation
- Reduces immediate financial pain but stretches it out over a longer period
- Payment based normal activity
- Possibility of forgiveness at later date
- Becomes a liability only when spent

Forgivable
- < 500 employees
- Cover payroll costs (2 months 2019 levels) + 25%
- Most mortgage interest, rent, and utility costs over the 8 week period after the loan is made (25% cap)
- Employee and compensation levels are maintained.
Business Assessment
- Labor expense strategy – do you have one based on your budget projections?
- Cash conservation planning
- +25% is free money.
- Buys time to ramp up new revenue streams and new technology that require staff support
- Free money!!!

> 500 employees
- Low interest
- $10,000 advance during loan processing
- 4 year deferred repayment
- Paid sick leave to employees
- Maintaining payroll
- Increased costs to obtain materials
- Rent or mortgage payments
- Repaying obligations that cannot be met due to revenue losses.