Urgent: Apply immediately for federal loans and grants through the Small Business Administration

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.

Payment Protection Program

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

• Loans up to $10 million.
• Find SBA-approved lenders in your area through SBA’s online Lender Match tool, and complete and download the application AS SOON AS POSSIBLE.
• The loan will be forgiven if you maintain your workforce (and quickly rehire employees cut after Feb. 15) and the borrowed funds are used within first eight weeks exclusively for payroll expenses, existing interest, rent, lease, and/or utility payments.
• Lenders may begin processing loan applications as soon as April 3, 2020.
• Download a Sample Application Form

Economic Injury Disaster Loan

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:

• Small business owners are eligible.
• Loan up to $2 million and an advance of up to $10,000.
• Businesses can apply immediately.
• Funds will be made available within three days.
• Find an Express Bridge Loan Lender by connecting with your local SBA District Office.

Express Bridge 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

State Resources

• Apply for the Unemployment Insurance (UI) Work Sharing Program to avoid laying off employees.
• All state taxpayers (individuals and businesses) can file and pay by July 15, 2020, matching the extended federal tax deadline.
• The state has compiled a list of assistance programs and regularly updated resource database.