Seeking a Lifeline: COVID-19 Loans, Advance Payment on Offer

An April 13 article in Part B News, “Seeking a lifeline: COVID-19 loans, advance payments on offer, but watch terms,” discussed programs under which healthcare providers can seek financial assistance during the COVID-19 pandemic, including Medicare’s Accelerated and Advance Payment Program and the U.S. Small Business Association’s Paycheck Protection Program (PPP). Rivkin Radler’s Robert Iseman and Margarita Christoforou were quoted in the article.

The Accelerated and Advance Payment Program was previously discussed here. In the Part B News article, Margarita cautioned that since amounts advanced to providers will need to be repaid beginning in 120 days, the program would not be a long-term solution for practices whose revenues may not bounce back quickly.

Bob told Part B News that due in part to the speed with which the PPP was created, the terms of the loans are not entirely clear, even to banks authorized to make them. Bob’s advice to providers is “work with your advisors to fill out the form in good faith and remember that how you resolve the ambiguities may affect your ability to have the loan forgiven — and watch for guidance [from SBA] because it changes day by day.” The PowerPoint slides from Bob’s recent Business Briefing on the PPP are available here.