CCM Health announced last week that it has received a $4.2 million loan from the U.S. Small Business Administration's (SBA) Paycheck Protect≠ion Program (PPP). The PPP is intended to help businesses keep their workforce employed during the COVID-19 pandemic.
CCM Health announced this week that it has received a $4.2 million loan from the U.S. Small Business Administration’s (SBA) Paycheck Protection Program (PPP). The PPP is intended to help businesses keep their workforce employed during the COVID-19 pandemic.
CCM Health CEO Brian Lovdahl spoke about the loan: “The PPP loan was developed by the SBA more than a month ago in response to the COVID-19 impact to businesses. As we are a governmental agency, we were not originally eligible for the funds, but there was legislation that was later adopted to include governmental agencies.”
According to Lovdahl, CCM Health applied for the PPP loan two weeks ago and closed on it a week later.
The amount that can be received by a business is based on a formula, as Lovdahl explained: “The total amount was originally calculated from 250 percent of one month’s salaries for employees. The amount we received was the amount for which we applied for.”
The COVID-19 pandemic has hit many businesses hard, and CCM Health had felt the impact as well. “We, like most other businesses, have seen a reduction in revenue of about 38 percent,” Lovdahl said. “Our expenses have not seen the same reduction as we must staff our departments regardless of how many patients we are seeing.
“We have furloughed many staff and they have filed for unemployment, of which we are responsible for about 50 percent of the unemployment received by the employees.”
There are requirements on how businesses must use PPP loan funds. Lovdahl said: “These funds can only be used for payroll costs, benefits, utilities, and mortgage interest. If these funds are not used for the aforementioned eligible expenses over the next eight weeks, they must be paid back with interest.”
Receiving these funds couldn’t have come at a more opportune time. “It means we are now able to bring back our employees so they do not have to rely on unemployment. While our volume of work is not where it was pre-COVID-19, we are able to work with these employees on benefitting our community in other ways.”
In the very near future, CCM Health will be reaching out and offering assistance to local employers. “Wea re going to be working with interested local businesses by having staff perform their employee screenings, as well as helping to develop best practices for how they are going to continue operations or start operations once restrictions on our local businesses are eased,” said Lovdahl.
The community as a whole will benefit from the PPP funds received by CCM Health. Lovdahl said: “We are continuing to demonstrate that CCM Health is well-equipped to deal with any health issue that develops, and we are a true partner in the health of each and every person in our community. We are committed to helping local businesses ge back to work and do so in a way that keeps their employees and customers safe.”
Businesses that are interested in being considered for this service are encouraged to contact CCM Health by emailing to Wes Duellman, Marketing and Communications Director, at email@example.com, or by calling 320-321-8115.