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Two Maine hospitals face looming closures amid pandemic

Two Maine hospitals face looming closures amid pandemic

Photo: 560 WGAN Newsradio


Two small hospitals in Maine say they could close by the end of June without funding through a federal loan program meant to help small businesses during the pandemic.

Calais Regional Hospital and Penobscot Valley Hospital in Lincoln were disqualified from funds from the Paycheck Protection Program because they’ve both filed for Chapter 11 bankruptcy.

Both hospitals argued in complaints filed Monday in federal bankruptcy court that there was no reference to bankruptcy being a barrier to funding in the original federal legislation created last month. Both hospitals filed for bankruptcy within the past 18 months.

Under the Payback Protection Program, businesses with fewer than 500 employees could apply for forgivable loans if they meet conditions, including spending at least three-quarters of the money on payroll.

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