5/19/2020
Paycheck Protection Program Loan Forgiveness Application Available
On May 15, the Small Business Administration (SBA) and the U.S Department of the Treasury released the Paycheck Protection Program (PPP) loan forgiveness application and the SBA issued guidance to further assist borrowers and lenders.
The SBA’s guidance provides four broad categories of costs that are eligible for forgiveness: payroll costs, business mortgage interest payments, business rent or lease payments, and business utility payments. At least 75% of the forgiven amount must be attributable to payroll costs during the eight-week period that began on the date the PPP loan was disbursed to the borrower. The ADA continues to advocate to extend the eight-week requirement.
The PPP loan forgiveness application and instructions inform borrowers how to apply for forgiveness of their PPP loans. Access the form here.
SBA Resumes PPP Loan Processing
Late Friday, the Small Business Administration (SBA) released a joint statement from SBA Administrator Jovita Carranza and U.S. Treasury Secretary Steven T. Mnuchin stating that the SBA will resume accepting Payroll Protection Program (PPP) loan applications today, Monday, April 27, at 10:30 a.m. EDT from approved lenders on behalf of any eligible borrower. This will ensure that the SBA has properly coded the system to account for changes made by the legislation.
“We encourage all approved lenders to process loan applications previously submitted by eligible borrowers and disburse funds expeditiously,” said Carranza and Mnuchin. “All eligible borrowers who need these funds should work with an approved lender to apply. Borrowers should carefully review [PPP] regulations and guidance and the certifications required to obtain a loan.”
The MDS recommends any practice owners who has yet to apply for a PPP loan, to contact your lender or financial institution immediately. If you previously applied and your application was put on hold when SBA funding ran out in mid-April, you should contact your lender to ask about your application status. If your loan application was rejected, we recommend that you contact your lender to discuss amending your application so you can reapply.
MDS Financial Impact Survey Results
To better understand the impact of COVID-19 on dental practices in Massachusetts, the MDS sent all active members an invitation last week to take part in our Financial Impact Survey. Nearly 1,000 members responded and, unsurprisingly, the results clearly show that the COVID-19 pandemic has had a major financial impact on both practice owners and non-practice owners alike. Respondents’ greatest areas of concern are:
- When practices will reopen
- How they can reopen safely
- How to protect their patients and staff
- Recovering from the significant financial impact of the pandemic
Read more of the survey results in detail.
Senate, House Approve Additional $370 Billion for PPP, EIDL Programs
The U.S. Senate and House of Representatives have just passed the Paycheck Protection Program and Health Care Enhancement Act, new legislation that will add $370 billion into the Paycheck Protection Program (PPP), Economic Injury Disaster Loans (EIDL), and emergency EIDL grants for struggling Americans and small businesses. This includes more than $250 billion in unrestricted funds for PPP loans, $50 billion for EIDL loans, and an additional $10 billion for EIDL advance grants. On April 16, the SBA announced that the initial $350 billion funding for the loan programs had been exhausted, so this additional funding could be good news for many small business owners—including member dentists—who have expressed frustration regarding the SBA loans. The bill will now go before President Trump, who is expected to sign it into law imminently.
The MDS strongly urges dental practice owners who have yet to apply to reach out to your lender or financial institution today and apply both both loans now. And if you had previously applied for an SBA loan and were rejected, we recommend that you go back to your lender to see if there is anything you can do to amend your application that can increase your chances of approval and reapply.
Small Business Administration (SBA) Loans Information
On April 16, the Small Business Administration (SBA) announced that it is unable to accept new applications at this time for Paycheck Protection Program (PPP) loans or the Economic Injury Disaster Loan (EIDL) COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding. The SBA says that EIDL applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. Treasury Secretary Steven Mnuchin asked Congress for an additional $250 billion in funding, which Congress and the Trump administration are currently trying to come to an agreement on. The ADA continues to work with the SBA to help dental practice owners impacted by the COVID-19 pandemic, and will provide updates if Congress makes any announcements in regard to additional funding. You should check with your financial institution to see what their process is during this period.
CARES Act Small Business Loans
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses that maintain their payroll during the COVID-19 emergency. These loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward. The administration will release more details, including the list of lenders offering loans under the program. In the meantime, the U.S. Chamber of Commerce has issued a guide to help small businesses and self-employed individuals prepare to file for a loan.
SBA and Treasury Department Answer PPP Loan Questions
There’s been much confusion surrounding the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) loans, especially for small business owners such as dental practices, who are in much need of this economic relief. The SBA is working with the U.S. Department of the Treasury to provide additional guidance to address borrower and lender PPP questions and they have developed a Frequently Asked Questions (FAQs) document that will be updated on a regular basis (the latest version was released April 17). Per the U.S. Treasury, borrowers and lenders may rely on the guidance provided in this document as the SBA’s interpretation of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and of the PPP Interim Final Rule.
Small Employers May Be Exempt from FFCRA
On April 1, the U.S. Department of Labor (DOL) issued a temporary rule regarding the Families First Coronavirus Response Act (FFCRA) provision that that requires employers to provide emergency paid sick leave and expanded medical leave to employees in certain COVID-19 circumstances. The DOL temporary rule states that employers with fewer than 50 employees—including dental practices—may be eligible for exemption from this provision. The DOL’s temporary rule states that small employers with less than 50 employees may be exempt if they meet certain criteria showing that providing the leave will be a burden on the business. In an alert issued today, the American Dental Association (ADA) said that it has checked with the DOL and they have confirmed that dental office owners are not required to pay paid sick leave or extended family leave—if the employee has a child whose school or daycare is closed due to COVID-19—as long as they meet certain criteria.
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