Since President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act on March 27, much of the focus has been on the Paycheck Protection Program and securing funds for small businesses — those defined as having less than 500 employees.
Many senior living organizations, however, fail to meet eligibility requirements for this program — even though they are still pouring significant financial resources into responding to the COVID-19 outbreak.
In an article Wednesday, specialty investment bank Ziegler shared info about three potential relief options for midsize operators:
The Exchange Stabilization Fund, which provides loans, loan guarantees and other investments to eligible businesses, including senior living organizations. These funds are for organizations with 500 to 9,999 employees. The Department of Treasury will provide low-interest loans (no higher than 2%) to businesses and not-for-profits, with no payments due within the first six months. The borrower must maintain 90% of its workforce through Sept. 30, among other requirements. Ziegler expects that additional information about this program will be provided in the next week or two.
FEMA assistance is offered to certain private not-for-profit organizations, including senior living organizations. The American Hospital Association released a summary of this public assistance program that can be accessed here. FEMA will cover 75% of eligible expenses, with applicants covering the other 25%
State-level grants and loans, many of which are being offered for healthcare-related entities. Several states also have obtained temporary increases in Medicaid funding for skilled care facilities. Although no national clearinghouse exists for these funds, providers should explore these options with the office of the governor and through state-elected officials.