Paycheck Protection Program
UPDATED January 14:
If you have previously received a PPP loan before the end of August, 2020, you may be eligible for a second loan, based on the passage of the latest stimulus package at the end of December. Businesses seeking a first time PPP loan are also able to submit applications.
Financial lenders with less than $1 billion in assets will be eligible to receive first and second draws in Paycheck Protection Program loan applications beginning Friday, January 15. Large lenders – those with more than $1 billion in assets -- will be able to receive applications beginning Tuesday, January 19. The program ends March 31, 2021.
Are you eligible for a second PPP loan?
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
- Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
In addition, more guidance has been published regarding the forgiveness and deductibility of PPP loans, including:
One Page Forgiveness Application
- Covered Expenses paid with your first PPP loan will now be tax deductible for money already received
- Funds from the first PPP loan will not be taxable income, which means the expenses paid with the first PPP loan are tax deductible
- The New Tax Bill, that President Trump signed on Sunday, December 27, 2020, repeals the requirement of deducting the EIDL advance from the PPP forgiveness amount
- The EIDL advance up to $10,000 per Practice (or $1,000 per Employee), will not have to be repaid
- The New Tax Bill simplifies the forgiveness process on PPP loans of $150,000 or less. Please refer to the resources below for more information on PPP loan forgiveness. Please remember, you MUST file for forgiveness, 10 Months after your 24-week period is up. If you do not file for forgiveness, your PPP Loan will become a two (2) year Loan payable at 1% interest.
The ADA has developed a fact sheet with a Q&A for dentists interested in learning more about the Paycheck Protection Program and other small business loans. Download the fact sheet here.
Read more about PPP loans, eligibility, applications, and forgiveness at the following sites:
Small Business Administration
HHS Provider Relief Fund
UPDATED September 14:
The U.S. Department of Health and Human Services’ Provider Relief Fund Payment Portal is CLOSED and NO LONGER ACCEPTING APPLICATIONS as of SEPTEMBER 13.
To be eligible for relief funds, dentists must meet a number of requirements, including (but not limited to) the following:
- Must not have received payment from the $50 billion General Distribution. This includes providers who have billed Medicare on a fee-for-service basis [Parts A or B] in 2019.
- Must not have received payment from the $15 billion Medicaid and Children's Health Insurance Program distribution.
Dentists who previously received payments from the Medicare general distribution or the Medicaid and CHIP distribution — even if they rejected and returned the payment — are not eligible to apply now, but they may be eligible in future distributions of the fund, according to HHS. The ADA has been advocating for this eligibility restriction to be lifted.
For a complete list of eligibility requirements, click here to read more from the ADA.