Small businesses, including physician practices, have another five weeks to apply for a forgivable federal loan under the Paycheck Protection Program (PPP), thanks to a law passed July 4.
The deadline to apply for PPP loans had been June 30. The new law extends that deadline to Aug. 8.
The Small Business Administration (SBA) announced the program in March to help small businesses affected by COVID-19.
PPP loans are available for $10 million or 2.5 times your practice’s average monthly payroll costs (excluding salaries of $100,000 or more), whichever is less. At least 60% of those funds must be used for payroll costs, and up to 40% may be used for costs such as mortgage interest, rent, and utilities.
Loans made on or after June 5 have a maturity of five years and an interest rate of 1%. Loans approved before June 5 have a maturity of two years.
In order to be eligible for loan forgiveness, you must file a request using one of two forgiveness application forms approved by SBA. These new forms incorporate changes made by the PPP Flexibility Act of 2020 and simplify the process, according to SBA.
The Texas Medical Association has created a podcast that answers many of the questions you might have about PPP loans. The podcast – which is hosted by Heather Bettridge, TMA associate vice president of practice management services – is accredited for 0.5 AMA PRA Category 1 Credits™.
If you have more questions about the loans or other ways to protect your practice during the pandemic, TMA has published a Practice Viability Toolkit with up-to-date information and resources.
You can find more tools, resources, and information on the practice viability section of the TMA COVID-19 Resource Center.
Last Updated On
May 04, 2021
Originally Published On
July 09, 2020