COVID-19 Financial Assistance
Read up on Medicare Advance Payment Program for COVID-19
Paycheck Protection Program (PPS)
Interim rules were released regarding loans under the Paycheck Protection Program. This interim final rule applies to applications submitted under the PPP through June 30, 2020, or until funds made available for this purpose are exhausted. We are encouraging clients with fewer than 500 employees to consider filing an application as quickly as possible. At this time with over 1,800 lenders involved, documentation requirements are being finalized. It is very possible that documentation requirements from these lenders will differ. Therefore, it is imperative that you contact your bank on-line for specific documentation they will require. You will receive further guidance on-line specific to each bank. They are requesting that you do not visit the bank or call but rather use their on-line resources.
We at TAD are ready and able to assist our accounting and full service clients as to the preparation of the required financial information.
Most banks are announcing that they have delayed their accepting of loan applications, as was originally scheduled to begin today, April 3, 2020 – Here’s what we currently know about the application process:
- Banks that are participating in the PPP lending program for small businesses impacted by the coronavirus weren’t ready as scheduled to launch today due to a lack of time, necessary guidelines, and set requirements from the Small Business Administration (SBA), and the Treasury.
- New guidelines were released Thursday evening (April 2nd) by SBA and US Treasury. A copy of these guidelines can be found at:
Highlights of new guidelines and application requirements
- The new application form was released and can be found at: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf
- The interest rate will be 100 basis points or one percent.
- The maturity term is two years.
- In determining maximum loan amount: Average Monthly Payroll multiplied by 2.5. Please refer to the instructions as to the definition of Average Monthly Payroll.
- The applicant must submit SBA Form 2483 (Paycheck Protection Program Application Form) and payroll documentation:
- You must also submit such documentation as is necessary to establish eligibility such as payroll processor records, payroll tax filings, or Form 1099- MISC, or income and expenses from a sole proprietorship. For borrowers that do not have any such documentation, the borrower must provide other supporting documentation, such as bank records, sufficient to demonstrate the qualifying payroll amount.
- Aggregate payroll costs required for determining the loan proceeds:
- Are from the last twelve months for employees whose principal place of residence is the United States.
- If a borrower has multiple owners: e-signature or e-consents can be used regardless of the number of owners.
- The PPP is “first-come, first-served”
- You will not have to make any payments for six months following the date of disbursement of the loan. However, interest will continue to accrue on PPP loans during this six-month deferment. The Act authorizes the Administrator to defer loan payments for up to one year.
- Not more than 25 percent of the loan forgiveness amount may be attributable to non-payroll costs.
Refinancing an SBA EIDL loan made between January 31, 2020 and April 3, 2020.
- Starting today, with the issuance of the final rule, borrowers cannot apply for both an Economic Injury Disaster Loan (EIDL) and a PPP loan.
- If you received an SBA EIDL loan from January 31, 2020 through April 3, 2020, you can apply for a PPP loan. If your EIDL loan was not used for payroll costs, it does not affect your eligibility for a PPP loan. If your EIDL loan was used for payroll costs, your PPP loan must be used to refinance your EIDL loan. Proceeds from any advance up to $10,000 on the EIDL loan will be deducted from the loan forgiveness amount on the PPP loan.
Consult your local bank on-line with questions on their application process as well as these updated loan terms.
Medicare Advance Payment Program
We are reaching out to ensure that you are aware that CMS on Saturday March 28, 2020 expanded the Medicare accelerated/advance payment program. This modification will help with COVID-19 cash flow issues. CMS has provided general instructions and guidelines. Each MAC has a specific request form to complete initiating the accelerated/advance payment.
CMS Information sheet:
Medicare will start accepting and processing the payment requests immediately. If TAD can be of any assistance to you do not hesitate to contact us.
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PDGM AND SMALLER HHA’S
The wide-ranging changes with PDGM are here. Smaller HHA’s will need to achieve dramatic improvement in its revenue cycle. The question will be if the organization wants to continue to attempt to perform these processes internally or outsource its billing function to TAD.
Agencies will need to be able to handle the 30 day billing periods and its reduction in RAP payments, with a constant and urgent need to minimize the days to RAP and days to final bill. This stress will only be heightened in 2021 with the complete phase-out of the RAP payment.
Small HHA’s may have to double down meaning managers and staff filling multiple roles. The performing of multiple duties will put intense pressure on the smaller providers. As you are aware small providers have limited support staff and even less financial resources compared to larger providers. Now is time to partner with TAD for your billing needs.
Outsourcing your billing to TAD will improve your cash flow, as a result of our expert staff and knowledge of PDGM. Keep in mind TAD fees are based on collections. Therefore, our motivation is to collect the proper amount of reimbursement in the quickest possible time.