Wicker introduces bipartisan bill to support rural hospitals during pandemic

U.S. Sen. Roger Wicker (R-MS) on July 20 introduced bipartisan legislation that would amend the Small Business Act to include hospitals serving rural areas or areas of persistent poverty in the Paycheck Protection Program (PPP).

Sen. Wicker sponsored the PPP Access for Rural Hospitals Act, S. 4217, with lead cosponsor U.S. Sen. Tina Smith (D-MN) to specifically waive the Small Business Administration (SBA) affiliation rules for nonprofit, critical-access hospitals and hospitals that serve rural areas so that they may qualify for PPP loans, according to the text of the bill.

“Our nation’s critical access hospitals and rural hospitals have risen to the challenge of the coronavirus pandemic despite substantial increases in operating costs and an uncertain future,” Sen. Wicker said. “The PPP Access for Rural Hospitals Act would ensure these vital facilities are able to apply for much-needed financial relief from the [PPP] so that they can continue to serve their communities.”

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) established the PPP to provide immediate relief to small business owners with fewer than 500 employees in the form of forgivable loans. Many small hospitals operate as part of a larger health system that exceeds the 500-employee limit under SBA’s affiliation rules, making them ineligible for the PPP, according to information provided by Sen. Wicker’s office.

If enacted, S. 4217 would grant smaller non-profit and rural hospitals access to the PPP program, thereby allowing them to retain staff and target resources on providing quality care to patients for the duration of the COVID-19 pandemic.

“Rural hospitals aren’t just vital to public health; they’re economic engines for their communities,” said Sen. Smith. “It’s important that they have financial support. That’s why we introduced this bipartisan bill to make nonprofit, rural, critical-access hospitals eligible for the Paycheck Protection Program.”