The hard-fought and finally passed second stimulus package is now law, and here’s what dentists need to know.
There’s a second round of Paycheck Protection Program (PPP) funds available – in the neighborhood of $285 billion dollars. First time applicants, and second-time applicants that meet certain criteria, are encouraged to apply.
Reportedly, a number of the problems with the first tranche of funds have been addressed in the new legislation. Most notably, the loophole that let very large and publicly traded companies receive funds has been closed. And, the legislation includes $12 billion specifically for minority-owned businesses.
Happily, the process for borrowing up to $150,000 has been simplified to a one-page form. It appears that you won’t have to submit supporting documentation, but be sure to keep that documentation in a secure place in case questions should arise.
As with the first round, PPP loans are designed to be forgivable if borrowers can show that at least 60 percent of funds were spent to cover payroll costs. Taking a more specific stance than the CARES Act, applicable costs can include certain group life, disability, vision, and dental insurance payments. So, it’s a pretty good deal for dentists.
For second-time borrowers, here are the eligibility requirements.
Your business must have less than 300 employees (not a problem for the vast majority of dentists).
Your business must have experienced a drop of 25 percent or greater in sales (compared to a year earlier) in at least one quarter.
There are also enhanced tax benefits in the legislation, some of which are temporary, so be sure to check those out.
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