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June 30, 2020

Funding Relief from the State of Oregon Coming to Smaller Rural Hospitals

Today, Business Oregon opened up another wave of funding to address an industry sector uniquely impacted by COVID-19. The Oregon Legislature allocated $50,000,000 from the federal CARES Act Coronavirus Relief Fund to Business Oregon to help smaller rural hospitals that have seen increased costs and dropping revenue in the midst of the COVID-19 pandemic.

“Smaller hospitals outside of urban areas have less economies of scale to absorb the increased costs of PPE and other equipment related to the health disaster,” said Business Oregon Interim Director Chris Cummings. "That paired with challenges covering payroll and fixed costs in the face of lost revenue from fewer elective procedures has created a significant need that the Legislature is addressing with these funds.”

Grants can only be used to cover necessary expenditures incurred due to the COVID-19 public health emergency from March 1, 2020, through December 30, 2020. This includes payroll, Personal Protective Equipment, and some other equipment. The grants are available to Type A and B hospitals in Oregon.

“Type A” is a rural hospital with 50 or fewer beds located more than 30 miles from another hospital. “Type B” refers to a rural hospital with 50 or fewer beds located within 30 miles of another hospital.

Hospitals can review the complete program information and application here:

The application period opens today, June 30, and applications will be accepted through July 10, 2020. Awards will be made until all funds are committed. Awards will be prioritized based on need, as exhibited in the application.

Funding offers will be contingent upon successful completion of the application process and negotiation between Business Oregon and funding recipients. All projects must be completed and grant funds must be expended by December 30, 2020. Unexpended funds will be returned to the U.S. Treasury in accordance with the CARES Act of 2020.

Media Contact: Nathan Buehler, 503-689-3559.


Business Oregon, the state's economic development agency, invests in Oregon businesses, communities, and people to promote a globally competitive, diverse, and inclusive economy. The agency's services span rural community development and infrastructure financing; business retention, expansion and recruitment; export promotion and international trade; investments in industry research and development and entrepreneurship; small business assistance; and support for arts and cultural organizations. Learn more at

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