The North Shore Health (NSH) board held a special meeting on Monday, May 4 to approve NSH entering into the Small Business Administration (SBA) Paycheck Protection Program.
All of the NSH board of directors, Sharon Bloomquist, Justin Mueller, Steve Nielsen, Kay Olson and Randy Wiitala took part in the meeting via ZOOM on the Internet with CEO/Administrator Kimber Wraalstad participating from the board’s hospital conference room.
The SBA loan to North Shore Health has been approved for $1,436,250 and will be forgiven if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. Any portion of the money not used for the above stated purposes in eight weeks will have to be repaid to the SBA.
With the ongoing threat of the COVID-19 pandemic, the hospital has had to forgo performing many tests and procedures to keep the facilities free of the coronavirus. That lack of business has resulted in a significant loss of revenue for North Shore Health.
“I am very pleased North Shore Health will be receiving a $1.4 million dollar loan from the Paycheck Protection Program,” said Wraalstad. “This Small Business Administration (SBA) loan is forgivable and will help offset the approximate $500,000 of lost revenue being experienced by North Shore Health each month. While it does not address all our concerns, it does provide some relief.”
Kimber added, “We are grateful to Security State Bank for processing the application and the work of our Congressional delegation, particularly Senator Tina Smith, for encouraging the SBA to clarify their guidance to allow Hospital Districts to participate in this program.”
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