PARTNERSHIP FOR AGING

Legislative Update

  • April 20, 2020 9:36 PM | Shayne Silver (Administrator)

    New $600B Covid-19 Loan Program Could Aid Senior Living After PPP Shuts Down

    By Tim Regan 

    A surge of interest depleted the $350 billion payroll protection program (PPP) in just under two weeks — but senior living companies that missed out on those loans may not be out of options just yet.

    Senior living owners and operators facing cash flow issues due to the Covid-19 pandemic may find relief in the Federal Reserve’s new Main Street Lending Program. The program is meant to aid small and medium-sized businesses that were in good financial standing before the pandemic began. And with $600 billion available to borrowers, the program is larger than the PPP, meaning it should last longer — but there are some key differences between the two.

    Perhaps the biggest difference is that loans doled out under the Main Street Lending Program are not forgivable. Some loans under the PPP functioned more like grants, as long as borrowers met certain conditions regarding maintaining payroll throughout the pandemic. But loans under the Main Street program will function like a regular loan, albeit one with lower interest rates and a more favorable window for repayment than normal, according to Kimberly Wachen, a senior partner in the real estate group of law firm Arent Fox.

    “The PPP loan could be looked at as free money,” Wachen told Senior Housing News. “This is cheap money, but you have to pay it back.”

    The PPP launched on April 3 with the intention of infusing small businesses across the country with much-needed cash after the U.S. economy shut down due to the Covid-19 pandemic. But demand for the forgivable loans was high, and the program ran out of money just two weeks after it began.

    The Main Street Lending Program could fill the gap, even for providers that also applied to a loan under the PPP. Companies that have up to 10,000 employees or up to $2.5 billion in 2019 annual revenues are eligible for the loans. The program is split into two facilities: the Main Street New Loan Facility for borrowers applying for new loans; and the Main Street Expanded Loan Facility for borrowers working to increase the size of an existing loan.

    For the new loan facility, loans have a minimum size of $1 million and a maximum size that is the lesser of either $25 million or an amount that does not exceed four times earnings before interest, taxes, depreciation, and amortization (EBITDA) when added to the borrower’s existing outstanding and committed but undrawn debt.

    The expanded loan facility, meanwhile, provides funding with an existing term loan that was originated on or before April 8. These loans have a minimum size of $1 million and a maximum size that is the lesser of: $150 million; 30% of a borrower’s existing outstanding undrawn debt; or an amount that does not exceed six times earnings before interest, taxes, depreciation, and amortization (EBITDA) when added to the borrower’s existing outstanding and committed but undrawn debt.

    The loans are also expected to carry a four-year term to maturity and added interest rates of the secured overnight financing rate — which on Thursday was 1.2%, Wachen said — plus 2.5% to 4%. And, principal and interest rates are deferred for one year under the program, giving borrowers some breathing room to get back to normal operations before they have to start making payments.


  • October 22, 2019 2:54 PM | Shayne Silver (Administrator)

    The Florida Legislature held several interim legislative committee meetings this week, developing issues for the 2020 Legislative Session that will commence on January 14, 2020.

    The most notable issue we have to report this week concerns the Florida House of Representatives initiative to review every agency’s Base Budget. The House is cautiously calling this initiative, a ‘Reprioritization Exercise’, not a ‘cut’ exercise. In Chair Magar’s comments, she stated it was the committee’s intent to review all current base budget spending and prior legislative decisions and priorities and to examine ways to reprioritize spending to address current priorities.

    A similar ‘Reprioritization Exercise’ was conducted by the House Appropriations Committees several years ago, with then Health Care Appropriations Committee member, Representative Erin Grall, assigned to review the DOEA budget. Many of you will remember that our collective advocacy efforts led Representative Grall to recommend NO cuts and NO Redirection/Reprioritization of DOEA-funded programs including Community Care for the Elderly, Home Care for the Elderly, Alzheimer’s Disease Initiative and Local Service Programs. DOEA was the ONLY department for which no changes were recommended.

    Fast forward to today – several years later, a near complete turnover of Appropriations Committee membership, a DOEA budget that’s grown by over $35 million in additional General Revenue, and the need to Educate and Advocate about the importance of the Aging Programs and Services administered by Florida’s Aging Network!

    This year’s ‘Reprioritization Exercise’ includes ‘Target Amounts’ of funding that the committee members must identify for ‘reprioritization’. For the Health Care Appropriations Committee, their ‘reprioritization target’ amount totals $654.4 million.

    Linked below are the instructions to House Appropriations members for how the budget ‘Reprioritization’ process is to be carried out. To be clear, the ‘reprioritization exercise’ is not being phrased as a ‘cut’ exercise, HOWEVER, if committee members determine that funding for other programs including Community Care for the Elderly, Home Care for the Elderly, Alzheimer’s Respite Care and Local Service Programs is no longer “the highest and best use of state resources” funding for these critical home and community care programs could be ‘Reprioritized’ for other use. House Budget Reprioritization Exercise Instructions

    I’m sure you’re asking, “How can I help? What can I do?” Well, for the next 13 weeks, we can work together to educate the Appropriations Committee members of the value and importance of programs administered by you and the Aging Network. Legislators will have what is considered a minimal budget surplus entering the 2020 legislative session totaling just $259 million. The good news is we still have a ‘surplus’; the bad news is the surplus is minimal. Please reach out to your local legislators and invite them to visit your provider agency, to meet the seniors you serve and to help them understand the value of the services you provide in your local community. Share with them your provider agency’s success stories, tell them about the people you serve, their age, their frailty, their needs. Help them understand who you are serving and why. Education and advocacy begin at home before your legislator and their staff step one foot into the state capitol. A letter to your legislator, an email, a phone call, or a discussion with legislative staff by you or your board members, regardless of the method of communication, is critical.

    Many of you remember former FCOA President Bill Aycrigg, retired CEO for CARES, the CCE Lead Agency for Pasco County. I remember Bill’s approach to advocacy and the tool he used was a simple 2-ring, laminated flip chart that introduced five of their existing clients. Each page had the client’s photograph and brief history of who they were, why they were a CCE client, the services provided, and a brief description of their needs. Bill presented his advocacy message to House Speaker Will Weatherford in perhaps the most effective way I’ve ever encountered in my years of advocacy.

    The 2020 Legislative Session could be a defining moment for Florida’s flagship home and community care programs as legislators examine the value and purpose of every single program funded by Florida’s $92 billion dollar budget. Programs such as Community Care for the Elderly help frail, lower income seniors remain at home safely and with dignity by providing critical help and care at home. The dedication our service providers and their staff demonstrate every day to helping those seniors entrusted to their care is unparalleled. We need to get this message out particularly during this House Health Care Appropriations Committee budget reprioritization initiative.

    Do what I do and Be Like Bill – share your agency’s client success stories with your legislators and tell them how critical increased funding is for the Community Care for the Elderly, Home Care for the Elderly, Alzheimer’s Disease Initiative, and Local Service Programs.

    Robert S. Beck

    PinPoint Results, LLC


  • October 16, 2019 12:15 PM | Shayne Silver (Administrator)

    The PFA is  gearing up for the 2020 Legislative Session to begin. There are many issues effecting Seniors both locally and nationally. 

    One issue we are passionate about supporting is Florida Medicaid's SIX-T Provision outlined below.
    Stayed tuned as we bring you more about the important issues and how to get involved in our Advocacy Outreach group.


The PFA is  gearing up for the 2020 Legislative Session to begin. There are many issues effecting Seniors both locally and nationally. 

One issue we are passionate about supporting is Florida Medicaid's SIX-T Provision outlined below.
Stayed tuned as we bring you more about the important issues and how to get involved in our Advocacy Outreach group.

 


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Mailing Address: Partnership for Aging, P.O. Box 542575, Greenacres, FL 33454-2575

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