Babin: Rural hospitals to benefit from Paycheck Protection Program

U.S. Congressman Brian Babin (TX-36) issued the following statement after the U.S. Department of Treasury released guidance making certain that rural hospitals are eligible to receive forgivable loans through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP).

Congressman Babin recognized that language in the CARES Act did not guarantee that some hospitals, particularly rural hospitals that are owned by county or district governments under state law, would be eligible for loan forgiveness and has been pushing for the Administration to make this possible. 

“Rural hospital staff all across Southeast Texas have been working tirelessly to protect their communities and defeat the COVID-19 outbreak,” said Babin. “The ongoing health pandemic has negatively impacted the revenue of rural facilities, making it even more critical that they receive the resources needed to keep their doors open. Our brave health care workers should not have to fear whether they will receive a paycheck each month. I’m relieved that the Administration listened to my requests for this change in statute and afforded our rural hospitals the eligibility to participate in the PPP.”

In its updated guidance, Treasury stated that hospitals who receive more than 50 percent of their funding from state and local government sources (not including Medicaid) are ineligible to participate in the PPP.

Additional information on the updated guidance from Treasury regarding hospitals, nonprofits, and businesses can be found here.

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Before creating Bluebonnet News in 2018, Vanesa Brashier was a community editor for the Houston Chronicle/Houston Community Newspapers. During part of her 12 years at the newspapers, she was assigned as the digital editor and managing editor for the Humble Observer, Kingwood Observer, East Montgomery County Observer and the Lake Houston Observer, and the editor of the Dayton News, Cleveland Advocate and Eastex Advocate. Over the years, she has earned more than two dozen writing awards, including Journalist of the Year.

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