Federal Updates
President Trump Signs Increased CARES Act Funding for Small Businesses and Health Providers
On April 24th, President Trump signed the Paycheck Protection Program and Health Care Enhancement Act (H.R. 266), the “interim” COVID-19 relief bill, which provides $484 billion of further economic relief for businesses and health care providers. This package will replenish the Paycheck Protection Program (PPP) with an extra $320 billion and set aside $60 billion for loans made by credit unions and other community-based financial institutions. It will also provide $60 billion for disaster and other emergency loans, $75 billion for increased expenses and lost revenue face by hospitals, and $25 billion for coronavirus testing. Negotiations on another, larger relief bill are ongoing.
SBA to Allow Public Hospitals Access to PPP Loans
On April 24th, the Small Business Administration (SBA) released an interim final rule (IFR) that clarifies that hospitals owned by governmental entities are not ineligible for small business loans through the PPP. Such hospitals will generally be eligible if they receive less than 50% of their funding from state or local government sources, excluding Medicaid. The IFR guidance also states that hedge funds and private equity firms, as well as any applicant currently involved in bankruptcy proceeding, are not eligible to receive PPP loans.
The IFR, which is effective immediately, is available here.
State Updates
Governor Cuomo Discusses COVID-19 Economic Impact in New York
Today (April 24th), Governor Cuomo held a press conference during which he discussed the economic impact of the COVID-19 pandemic on New York State, including a projected $13.1 billion shortfall (14 percent) in revenue from the Executive Budget forecast, and a projected $61 billion decline during fiscal years (FYs) 2021-2024. As per new authority granted in the enacted New York State FY 2021 Budget, the Budget Director will continue to review COVID-19 related expenses and tax receipts for the month of April, and will send the State Legislature a plan for approval by May 1st containing proposed payment adjustments to balance the budget.
The Governor also announced that he will be issuing an Executive Order ensuring that every New Yorker automatically receives a postage-paid application to receive an absentee ballot. This directive follows an Executive Order issued earlier this month allowing all New Yorkers to vote absentee in the June 23rd primaries.
Governor Cuomo Announces Child Care Scholarships for Essential Workers, Supplies for Child Care Providers
On April 23rd, Governor Cuomo announced that the State will provide $30 million in federal CARES Act funding for child care scholarships for essential workers. “Essential workers” will include health care providers, pharmaceutical staff, firefighters, law enforcement, food delivery workers, grocery store employees, and others responding to the COVID-19 pandemic. Such individuals will be eligible for scholarships if they have income below 300 percent of the federal poverty level ($78,600 for a family of four). Eligible essential workers can use the funding to pay for their existing care arrangement or can contact their local child care resource and referral agency to find openings if they are in need of child care. This program, which will be administered by the Office of Children and Family Services (OCFS), is intended to continue for the length of the COVID-19 emergency.
The Governor also announced that the State will use funding from the CARES Act to purchase supplies for child care providers statewide who remain open, including masks, gloves, diapers, baby wipes, baby formula, and food. Child care resource and referral agencies will receive grants of approximately $600 per provider. Providers looking for supplies should contact their local child care resource and referral agency.
The Governor’s press release is available here.