While you have been focused on the health of your patients, CAFP would like to ensure you are also taking care of your practice’s fiscal health.
Below is a description of three Small Business Administration (SBA) loan programs available to eligible businesses with 500 employees or less. We strongly recommend that you reach out to your banker immediately to ask about the Paycheck Protection Program loan/grant, which features full or partial loan forgiveness. It is our understanding that loans will be made to eligible applicants on a first-come-first-served basis, so early application is essential.
Businesses must apply for this loan through an SBA lender. You can receive up to $10 million or 2.5 times your average monthly payroll. The loan money can be used for such things as: payroll, health insurance premiums, mortgage interest, rent, or utilities. Loan payment will be deferred for six months. Full or partial loan forgiveness is available based on whether you retain staff. Your lender will determine eligibility. It is expected that documents will be available to start processing loans on Friday, April 3. As of writing, full guidance has not been released. For more detailed information, including a sample application form to get started, please go to https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp.
Details for Paycheck Protection Program
Businesses must apply for this loan directly through the SBA and can receive up to $2 million. Funds can be used for such things as payroll, accounts payable and most other business-related expenses. Businesses can apply immediately. Businesses that are currently experiencing a temporary loss of revenue may also be eligible to apply for a SBA Express Disaster Bridge Loan with an advance of up to $10,000, which will be made available within three days of a successful application. The loan advance would not have to be repaid. A larger loan is not eligible for forgiveness. To apply for an EIDL Loan, please click here: https://covid19relief.sba.gov
Details on Economic Injury Disaster Loan:
You must apply for this loan through a banker that is an SBA lender. Allows businesses to receive a smaller loan with less paperwork. This loan is not eligible for loan forgiveness. For more information, including a detailed program PDF, please click here https://www.sba.gov/document/support–express-bridge-loan-pilot-program-guide