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WASHINGTON, DC – U.S. Congressman Brian Babin (TX-36) issued the following statement after the U.S. Department of Treasury released guidance making certain that rural hospitals are eligible to receive forgivable loans through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP). Congressman Babin recognized that language in the CARES Act did not guarantee that some hospitals, particularly rural hospitals that are owned by county or district governments under state law, would be eligible for loan forgiveness and has been pushing for the Administration to make this possible. 

“Rural hospital staff all across Southeast Texas have been working tirelessly to protect their communities and defeat the COVID-19 outbreak,” said Babin. “The ongoing health pandemic has negatively impacted the revenue of rural facilities, making it even more critical that they receive the resources needed to keep their doors open. Our brave health care workers should not have to fear whether they will receive a paycheck each month. I’m relieved that the Administration listened to my requests for this change in statute and afforded our rural hospitals the eligibility to participate in the PPP.”

NOTE: In its updated guidance, Treasury stated that hospitals who receive more than 50 percent of their funding from state and local government sources (not including Medicaid) are ineligible to participate in the PPP. Additional information on the updated guidance from Treasury regarding hospitals, nonprofits, and businesses can be found here.

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