04/02/2020

CASA ASC COVID-19 Resources 4.2.2020

The updates and response to COVID-19 rapidly change each day. As you are responding to the needs of your patients, ASC and community, we are working to provide you with resources to assist you in navigating the pandemic response.

Below is important information for ASCs as they prepare to address their economic impact of COVID-19.

Paycheck Protection Program

You can apply beginning tomorrow, Friday, April 3, 2020. Please apply as quickly as you can because there is a funding cap. Download the application here to gather information and reach out to your lending institution.

On March 27, 2020, the federal Coronavirus, Aid, Relief and Economic Security Act (the "CARES Act") was signed into law, which aims to provide nationwide relief to individuals and businesses that have been negatively impacted by the coronavirus outbreak. A critical element of the CARES Act is the Paycheck Protection Program ("PPP"), which will provide small businesses with up to $349 billion in relief through low interest, forgivable loans intended to prevent layoffs and business closures. Lenders approved by the U.S. Small Business Administration ("SBA") will provide loans under the PPP ("Covered Loan(s)"). The PPP covers the period beginning February 15, 2020, and ending on June 30, 2020 (the "Covered Period").

To be eligible for the PPP you must be a small business, sole proprietor, or non-profit that has fewer than 500 employees. You must have been in business prior to February 15, 2020. All loans will have the same terms regardless of lender or borrower and there is no Personal Guarantees or Collateral required for applying for the loan.

Economic Injury Disaster Loans and Loan Advance

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.

The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.

CA Assistance for Small Business Who Don't Qualify for Federal Assistance

Today, April 2, 2020, Governor Newsom announced that the state is allocating $50 million to the California Infrastructure and Economic Development Bank for loan guarantees to small businesses to help eliminate barriers to capital for individuals who do not qualify for federal funds. The state is also allowing small businesses to defer payment of sales and use taxes of up to $50,000, for up to 12 months.

Economic Links