Smith Introduces Bill to Make Rural Hospitals Eligible for PPP Loans

U.S. Sen. Tina Smith, D-Minn., addresses students at the University of Minnesota on Election Day, Tuesday, Nov. 3, 2020, in Minneapolis. Smith faced Republican Jason Lewis in the Senate race in Minnesota. (AP Photo/Jim Mone)

(KNSI) – Minnesota Sen. Tina Smith is introducing legislation that aims to make certain non-profit, critical access hospitals in rural areas eligible for the Small Business Administration’s Paycheck Protection Program forgivable loans.

Though these hospitals usually employ fewer than 500 people — the cutoff for PPP loan eligibility — many are part of larger networks whose total employment exceeds 500 people.

“It turns out that rural hospitals like, for example, CHI St. Gabriel’s in Little Falls, weren’t eligible for the Paycheck Protection Program because they were affiliated with a bigger network, and yet they still had really significant challenges,” Smith said.

The COVID-19 pandemic has made the already existing financial strain on critical access hospitals worse, Smith said.

“We were seeing many rural hospitals closing their doors, and COVID made that even worse,” Smith said. “What we want to do with this Paycheck Protection Program is to keep those rural hospitals operating and as financially healthy as possible … not only for today as we work our way through this pandemic but also for when we come out the other side and we need those hospitals there.”

The PPP Access for Rural Hospitals Act is co-authored by Smith, a Democrat, and Republican Sen. Roger Wicker of Mississippi.

“I really work hard on finding bipartisan support for my legislation, and this is a great example of that,” Smith said. “Senator Wicker and I are in different parties, but we both have rural hospitals in our states that have struggled during the pandemic.”

Smith said she’s hopeful that Congress’s next COVID-19 relief package will include the PPP Access for Rural Hospitals Act.

The two senators introduced the bill Tuesday.

Smith and Wicker introduced this bill during the previous Congressional session in July 2020, but it did not receive a vote. It had a companion House bill introduced in June 2020 by Republican Rep. Michael Guest of Mississippi.