The CARES Act or the Coronavirus Aid, Relief, and Economic Security Act was signed by President Trump last Thursday, March 27, 2020. It is the third piece of legislation designed to help Americans navigate the difficult challenges posed by the pandemic, and there is a lot to unpack. The CARES Act has many parts, but there are a few in particular that small business owners like dental practitioners should be familiar with. The PPP is one of the most significant parts that dental practices can leverage during these difficult times.
The Paycheck Protection Program
The PPP or Paycheck Protection Program enables businesses to retain employees during the COVID-crisis by providing eligible businesses with federally-guaranteed loans up to a certain amount. For the most part, dental practices are eligible for relief under the PPP, and the Fed will guarantee forgiveness on the loan if it is used for certain operational expenses. The streamlined loan is backed by the SBA and offers 2.5x your average monthly payroll cost up to $10M. It is a ten-year loan at 4% or lower, and there are likely going to be some adjustments. But the spirit of the bill is to enable employers to continue putting money in the pockets of their employees.
Talk to Your CPA and Leave No Money on the Table
It’s going to take a little bit of time to get this money into the hands of dental practice owners, but it should go through by approximately the 26th of April. If you do it this way, you will have roughly eight weeks of payroll to compensate your employees, and it will hopefully be combined with an uptick in revenue as things move back to business as usual. Make sure to download my FREE COVID Loan Grant Calculator and talk to your CPA so that no money is left on the table. Please visit me at www.theprogressivedentist.com for more informative, money-saving podcast episodes like this one.