Small Business Administration Extends Economic Lifeline to Rural Healthcare Providers

Dear Editor,

Each year during National Hospital Week, communities across America come together to celebrate the workers and institutions that dedicate themselves to maintaining public health. This year, we're even more aware of the sacrifices these people and businesses make, especially in times of crisis.

In many of Montana's hometowns and throughout our nation, hospitals and health institutions are community pillars. Often, 20 percent of a rural community's economy is directly tied to a local hospital. Many of these businesses already operate within tight financial margins, and a recent loss of revenue due to the virus has stretched already-thin budgets to their breaking point. As a result, communities are faced with the threat of losing local health institutions, which could result in families driving additional hours for mandatory health needs and jobs disappearing from our hometowns.

As part of the Payment Protection Program, the Small Business Administration (SBA) has taken unprecedented action to extend an economic lifeline to Montana's rural health businesses and workers. By making nonprofit hospitals eligible for forgivable loans, leveraged through the power of private vendors, SBA is providing the capital and certainty health organizations need to retain employees and continue services.

Take Garfield County Health Center in Jordan, Mont., for example. Because of COVID-19, the very rural Montana critical access hospital, medical clinic and nursing home (with typically 16-20 residents) facility was at risk. Located in a very small town of about 450 residents, in a county of population 1,200, this facility is not only a crucial health care resource but also a significant economic driver with about 35 local employees. Commission Chairman Jerry Collins told the SBA Montana District office that Stockman Bank was professional, efficient and easy to work with in the PPP loan process. He also said the PPP loan itself, by providing for two months' salary for employees, was "tremendously helpful" in keeping the facility operational and staff to maintain all nursing home residents with proper care.

According to the Montana Hospital Association, hospitals represent Montana's largest private-sector industry, employing more than 24,000 people with a payroll of over $1.5 billion. Hospitals are frequently the biggest employer in town, particularly in rural parts of our state. It's easy to see how the SBA's Payroll Protection Program can play two very important roles in a public health crisis: keeping our hospitals open and keeping the dollars flowing through the communities they serve.

There is still more than $100 billion in assistance available for Montana's rural businesses, health care providers, farmers, ranchers, nonprofits, and faith-based groups. These funds are critical to retaining employees, aiding payments on essential bills, and reducing economic injury.

During National Hospital Week, we are reminded that America's hospitals and businesses have the grit and tenacity that make them strong. As we all weather this storm, the SBA will continue using all available resources to clear hurdles for Montana's hospitals and business owners. For additional resources on programs and resources in your community, visit http://www.sba.gov/paycheckprotection. 

Sincerely,

Dan Nordberg, SBA Director of Rural Affairs

Brent Donnelly, SBA Montana District Director