May 19, 2020
On Friday, May 15, 2020, the U.S. Small Business Administration and the U.S. Department of the Treasury published the Paycheck Protection Program Loan Forgiveness Application.
The Paycheck Protection Program (PPP), created by the Coronavirus Aid, Relief and Economic Security Act (CARES Act)—provides small businesses with less than 500 employees with forgivable, zero-fee loans of up to $10 million or 2.5 times their average monthly payroll costs. Part of these loans may be forgiven and not counted as income if 75% of the loan is spent during the first eight weeks of the loan origination on payroll. Other allowable expenses for the loan include, group health care benefits, lease payments, mortgage interest, and utilities.
To have the loan forgiven, you must submit an application via your lender. View the application form and detailed instructions here.
In addition to the new application for loan forgiveness, SBA has issued some changes to simplify the loan process. The PPP program still has funding so interested physicians should apply immediately.
For more information about the PPP program, see CMA’s COVID-19 Financial Toolkit for Medical Practices