Letter to Steven Mnuchin, Sec. of the Treasury, and Jovita Carranza, Admin. of the Small Business Administration - Baldwin Joins Democratic Lawmakers Calling For Trump Administration to Ensure That Minority- Rep. Estes Pursues Further Relief Options for Rural Health Care

Letter

Dear Secretary Mnuchin and Administrator Carranza:

Thank you for all the work you have done to help our small businesses respond to the novel
coronavirus (COVID-19) crisis in these difficult times. As you work to administer vital emergency
assistance programs, we are writing to bring an urgent issue to your attention regarding the
Paycheck Protection Program (PPP), and to request you ensure rural hospitals and Rural Health
Clinics (RHCs) who have facilities owned or operated by counties or districts are eligible for this
program, as well as other critical financial assistance programs.

H.R. 748, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, was signed into law
with our support on March 27, 2020, enacting essential lifelines for struggling businesses. It is
critical SBA ensure CARES Act programs, especially PPP, can be used to support our rural
hospitals and clinics. We have heard concerns SBA is interpreting the CARES Act language in a
way which would preclude rural hospitals and RHCs whose facilities are owned or operated in
some way by a district or municipality which they serve from being eligible for certain assistance,
despite often receiving no direct funding from these government entities.

Should Treasury and SBA interpret the language this way, it would negatively impact numerous
rural hospitals and RHCs across the country. Prior to the COVID-19 pandemic, many of these
hospitals and clinics had operating deficits; their cash flow problems have become increasingly
dire as rural hospitals and RHCs have been forced to cancel elective procedures, their primary
source of revenue.

During any time period, these rural hospitals and clinics are essential to support rural communities,
but they are especially vital during this time of public health emergency. In addition to their
irreplaceable role in serving the everyday health needs of our rural communities, many of these
health care providers are treating COVID-19 cases in their communities and working to contain further spread of the disease. In many communities these hospitals are also the largest active
remaining employer in the economy.

We urge you to take immediate steps to ensure rural hospitals and RHCs are eligible for the
relevant CARES Act loan programs such as PPP in order to continue their work on the frontlines
of fighting the COVID-19 pandemic. We look forward to serving as collaborative partners in
SBA's and other agencies' work to support rural health care providers as we respond to this crisis.

Sincerely,

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