Published: March 27, 2020
On March 27, President Donald Trump signed H.R. 748, the third package of legislation to provide relief and support in response to the COVID-19 pandemic. ASCA recommends that ASCs contact their business partners who assist with tax and lending issues to discuss how the options created by this legislation might apply to an individual ASC. The full text of the legislation is available here.
Under the new law, ASCs can attempt to access three possible sources of financial assistance:
- about $350 billion in loans for small businesses designed to provide stability in light of the uncertain economic conditions caused by COVID-19; the maximum loan amount would be increased to $10 million, and loans would be forgivable if certain conditions are met;
- about $450 billion in loans, loan guarantees and other investments for businesses; these funds flow through the Federal Reserve and are different than the direct loans from the Treasury Department that airlines can access;
- $100 billion reserved for healthcare providers to make up lost revenue or support additional costs that are attributable to the coronavirus; this fund will be administered by the US Department of Health & Human Services subject to guidance and requirements issued by the department.
The legislation would also make changes to the tax code, provide flexibility for telehealth services and extend programs under Medicare and Medicaid. Additionally, the legislation would limit paid leave requirements instituted in previous legislation and ensure that federal funding for leave is provided through advance tax credits. The bill also included rebate checks from the Internal Revenue Service to individuals and families and expanded unemployment insurance, among other provisions.
While it is likely that Congress will pass a fourth legislative package, it is unclear when work on that bill will begin or what the scope of that legislation might be.