The Pennsylvania Infrastructure Investment Authority (PENNVEST) Board of Directors voted last week to authorize up to $450 million for financially strained hospitals and health systems.
The Hospital Emergency Loan Program, or HELP, will provide short-term financial relief to state hospitals preparing for a surge of patients infected with COVID-19 and the economic fallout of the nationwide pandemic.
“This action today utilizes PENNVEST funds to go out to hospitals that need it now, so that they can continue to provide essential life-saving services and obtain supplies such as personal protective equipment (PPE) for frontline healthcare workers,” said State Sen. Lisa Boscola (D-Northampton), a member of the PENNVEST Board of Directors.
Current PENNVEST funds provide low-interest loans and grants to municipalities for water, wastewater, and sediment run-off mitigation projects, which Boscola said can and should be rerouted for emergency health system financial aid.
The Department of Community and Economic Development will administer the funds through the Pennsylvania First Program, allowing life-sustaining health facilities to obtain a bridge loan to continue preparing and stocking necessary medical supplies and materials for patient treatment. Pennsylvania health care facilities licensed as hospitals by the Pennsylvania Department of Health that are eligible to receive federal grant funding through the CARES Act qualify for HELP.
“Hospitals across Pennsylvania should be focused on saving lives, not worrying about how to make ends meet until federal relief funds arrive months from now,” said PA State Treasurer Joe Torsella, whose office must approve any investments made by the PENNVEST board. “I am proud to approve this prudent investment that will provide immediate, low-cost, and direct financing to enable hospitals to sufficiently staff their floors, purchase treatment supplies and protective equipment, and successfully prepare for the surge of COVID-19 patients in the coming weeks.”
Loan repayments to PENNVEST would be made back by the Commonwealth and applicants by Sept. 30, 2020, with an interest rate of 0.5 percent on any borrowed funds. The maximum loan size is $10 million per hospital.
Applications are available until April 20 on DCED’s website.