HEROES Act
The HEROES Act was introduced in the U.S. House of Representatives earlier this week. The bill is a $3 trillion package that includes significant funding and policy changes. The bill was developed by House Democrats, and negotiations with Senate Republicans and the White House are now proceeding. A longer outline of notable highlights in the HEROES Act will be included in the Affiliate Folder tomorrow, but I want to flag three provisions for you that we have collaborated on and are of interest to our members.
Small Business Administration Paycheck Protection Program:
The HEROES Act would expand eligibility for the Paycheck Protection Program (PPP) to include 501(c) nonprofit organizations other than just 501(c)(3) or (c)(19) organizations. This change, if included in final legislation that is enacted into law, clears up any ambiguity about 501(c)(6) eligibility for PPP loans. The coverage period for borrowers would also be extended from the current eight-week period to 24 weeks and extends the covered period from June 30
th
to December 31
st
. The legislation would also eliminate the 75/25 rule on the use of loan proceeds, make clear that employers can use the Employee Retention Tax Credit and PPP loans, and ensure that the principal and interest loan assistance is not treated as taxable income for borrowers.
HHS Provider Relief Funding:
The HEROES Act would provide an
additional $175 billion to the Public Health and Social Service Emergency Fund. $100 billion is dedicated to hospitals and healthcare providers to cover healthcare
expenses and lost revenue
, and $75 billion would be for testing, contract tracing, and other disease mitigation efforts.
HHS Provider Relief Fund Policy Changes:
The HEROES Act directs the Health Resources and Services Administration (HRSA) to establish a program
reimburse eligible providers for eligible expenses or lost revenue during the 2020 calendar year.
Applicants would be required to apply for funding on a quarterly basis.
Eligible expenses would be paid at 100% and lost revenue at 60%. Funds provided through this program would not need to be repaid.
There is one important condition for physicians to be aware of
. Any provider who receives a grant through this program would be prohibited from balance billing during the emergency period (whether in or out of network).
