More Developments in the PPP

The last time Stephen Woessner and I spoke was pre-COVID, and it would be an understatement to say that a lot has changed since then. If you haven’t been following the latest Progressive Dentist solocast series, I highly recommend revisiting Episode #48, Episode #54, and Episode #59 for more context around this discussion. Stephen is the founder & CEO of Predictive ROI, a digital marketing agency. And he hosts the Onward Nation podcast—a top-rated daily show for learning how today’s top business owners think, act, and achieve. We repurposed my interview with Onward Nation to bring you more insights into the PPP, what has changed, and where it is going.

The Latest Highlights of PPP Forgiveness

Originally, business owners had eight weeks to spend the Paycheck Protection Program money, and there were very stringent restrictions on how the money could be spent (i.e. 75% had to go to payroll). Recently, a new act was passed that extended the use period to 24 weeks. The extension gives business owners a lot more breathing room to use the money as efficiently as possible and keep their businesses profitable. Another hurdle for early filers was owner’s compensation for partnerships—there was not an easy way to factor that into the application. Now, the Treasury and SBA are allowing partners to go back for a second try so they can ask for more money.

The EIDL Loan

The Economic Injury Disaster Loan was initially capped at $2M with $10,000 per company upfront. Since then, it has been reduced to $150,000 with $1,000 per FTE upfront up to 10 employees. Taking the grant reduces the amount of the PPP loan that can be forgiven, but you can use it strategically as an insurance policy for the near future. They recently reopened for applications again and the rates are very reasonable (30-year loan at 3.75%). We don’t quite know what is going to happen in the next 6-12 months, so this loan provides business owners a lot of flexibility. You don’t have to spend it, but it will be there if you need it.