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Ringgold County Hospital’s Board of Trustees met for a special meeting, Tuesday, May 5 to approve a resolution authorizing the execution and delivery of the Small Business Administration Paycheck Protection Program Loan.
RCH administrator Gordon Winkler explained the PPP program is part of the recently enacted federal CARES Act. The program allows financial institutions to loan funds unsecured and with no collateral under this particular portion of the CARES Act to aid small businesses in meeting payroll, mortgage interest, rent and utilities as well as other specified expenses. Winkler noted the amount borrowed would cover approximately two months of payroll for RCH/MAMC.
The money received is technically a loan, and considered public borrowing. Therefore the legal process for public borrowing have been followed, according to the laws of the State of Iowa. Within the terms of the loan are provisions in place to allow the loan to be forgiven if money is spent according to the specific terms of the loan and those expenditures are documented and validated.
Tessa Barnes, board trustee and local banker, noted that the loans do not have a 100 percent guarantee of forgiveness, according to information their financial institution has received; however, according to Winkler, he has spoken with Iowa’s senators Joni Ernst and Chuck Grassley, and it appears there will be strong support for forgiveness of these approved loans.
In the unlikelihood the loan would not be forgiven, it will be repaid at an interest rate of 1 percent.