Paycheck Protection And More Benefits Of The CARES Act For Mental Healthcare Providers

Paycheck Protection and More Benefits of the CARES Act for Mental Healthcare Providers

While money is tight, some behavioral health and addiction treatment center owners might need a little help making payroll and paying rent. We wrote this blog to make you aware of some resources available to you to assist during COVID-19.

The CARES Act, in addition to giving $425 million to SAMHSA dedicated to behavioral healthcare and addiction treatment directly, made funds available to the Small Business Administration (SBA) for businesses with fewer than 500 employees. Review this information on the Paycheck Protection Program, debt relief, and bridge loans to see if these options may be right for you.

Really quickly, what’s the CARES Act?

The CARES Act is the Coronavirus Aid, Relief, and Economic Security Act passed by Congress and signed into law by President Trump in response to the COVID-19 pandemic. The goals of the CARES Act include bolstering healthcare responses to the pandemic, as well as provisions to help relieve the economic effects on business owners and workers.

Thanks! So what are my resources?

Paycheck Protection Program

 Paycheck Protection Program

The Paycheck Protection Program (PPP) provides $349 billion to support small employers so they do not have to lay off employees and can make rent payments.

As part of SBA’s effort to provide COVID relief, PPP provides loan forgiveness to small businesses that retain their employees, temporarily expanding the traditional SBA 7(a) loan program. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities from the date that you receive the funds.

You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program as your best result will be from a banker that you know.

The Paycheck Protection Program created by the CARES Act applies to non-profit, for-profit, and tribal business entities. The average loan size is $113,705.

SBA Express Bridge Loans

SBA Express Bridge Loans

Like the old commercial said, “I need cash now!” Small businesses with an existing business relationship with an SBA Express Lender can access up to $25,000 immediately.

These loans can help support your organization to overcome the temporary loss of revenue or to bridge the gap while you are waiting for an Economic Injury Disaster loan.

Learn more.

Debt Relief

Debt Relief

The SBA will provide debt relief for loans taken out before the COVID crisis. Specifically, “the SBA will pay 6 months of principal, interest, and any associated fees that borrowers owe for all current 7(a), 504, and Microloans in regular servicing status as well as new 7(a), 504, and Microloans disbursed prior to September 27, 2020.”

This relief does not include COVID-related loans, PPP, or Economic Injury Disaster loans.

Update on SAMHSA’s COVID Emergency Grants

At the time of this blog, SAMHSA is no longer taking applications for “Emergency COVID-19” grants. The CARES Act allotted $425 million to the Substance Abuse and Mental Health Services Administration (SAMHSA) to provide relief grants to behavioral health clinics. Per SAMHSA, the most common funding amount was $97,402, with some grants ranging up to $4 million. 

SAMHSA’s COVID grants can appeal to organizations with more than 500 employees who don’t qualify for Small Business Administration loans. They also cover Certified Community Behavioral Health Clinics (CCBHCs) and Tribal Behavioral Health Clinics.

We will keep you updated on any future emergency grants. View SAMHSA’s COVID-19 resources at and keep an eye on for any new grant announcements and upcoming deadlines. For general inquiries, contact SAMHSA’s Beverly Vayhinger at (240) 276-0564 or


AZZLY® provides a comprehensive software solution for behavioral healthcare and addiction treatment providers in the United States. Our modern platform, AZZLY Rize™, is an all-in-one solution that makes detailed documentation of services provided easy whether serving one location or multiple locations, a small staff of 10 or 100s, all levels of care and programs are uniquely configured. AZZLY Rize provides electronic health record (EHR), patient management (PM), and revenue cycle management (RCM) services, and AZZLY clients have access to a dedicated, 24/7 Client Services Team. While money is tight, an integrated RCM solution is necessary to ensure your organization is reimbursed accurately and swiftly. Take the first step and fill out this brief form to schedule a discovery call and learn why AZZLY can make the right difference for your business today or email