By Alexis Guerra
To support small business owners in
the midst of COVID-19, the Academy of Doctors of Audiology (ADA) hosted a town
hall webinar on April 1, to discuss the CARES
Act, signed into law on Friday, March 27, to provide economic relief to
individuals and businesses facing hardship or economic ruin. In addition, this
new legislation will impact
hospitals and public health, education, state and
local governments, and the federal safety net.
The most pressing topic discussed was
the Paycheck Protection Program (PPP). The program, administered by the Small
Business Administration (SBA), provides small
business emergency loans to borrowers impacted by COVID-19.
Scott Bishop, MBA, JD, general
counsel and director of corporate development at Audigy, went into detail about
the loan and its generous loan forgiveness component. He stated that the loan
is to be used for payroll costs, healthcare benefits, mortgage interest, rent,
and utilities. Borrowers are then eligible for loan forgiveness equivalent to
the sum spent on these covered expenses during the first eight weeks of the
loan’s use.
Bishop also noted that the maximum
loan size is equivalent to 250 percent of the employer’s average monthly
payroll costs or $10 million, whichever amount is less. The loan also has a
deferred payback of six to 12 months, an interest rate of four percent, and fee
waivers.
Owners of private health practices
that have already applied for Economic Injury Disaster Load Assistance (EIDLs)
can refinance the loan as part of the PPP. According to Bishop, there is no
clear guidance on how this will be done but there is a section on the PPP’s
application asking the borrower if they have received an EIDL.
However, an EIDL comes with a $10,000
advance delivered within two to three days, making it a better option for some
private practice owners.
“This is a good opportunity if you
need $10,000 and you need it very quickly; this is probably a better bet as
compared to waiting for an application with the PPP,” said Bishop.
Lesley Kelly, CPA, the other key
speaker at the town hall, went over the PPP application process. Kelly noted
that although lenders will begin processing loan applications for small
business and sole proprietors on April 3, it’s best to start preparing now.
The application is currently live at SBA.gov and the documentation needed to apply will depend on the lender
used. However, Kelly recommends gathering payroll registers from 2019 and 2020,
state and local taxes related to payroll, 2019 tax return or 2019 financial
statements, payments for group health insurance premiums, and retirement benefits
paid in 2019 and 2020. She also noted that verifying this information with an
accountant is vital to receiving the loan with no issues.
“It’s really important that you
verify these calculations as best as you can or work with your accountant to
get these numbers as soon as you can,” said Kelly. “What you put on this
application needs to be your best effort in getting this information.”
Kelly also recommends private
practice owners to contact their local bank to discuss the PPP and to verify
that they intend to support the program.
When applying for the PPP, the
application also must be signed by the sole proprietor or partners owning 20 percent
or more of equity of the business, owners of 20 percent or more of the
corporation or, for an LLC, all members owning 20 percent of the company.
Bishop also quickly summarized the
Direct Payments to Individuals portion of the CARES Act during the town hall,
reminding owners of private practices that they are eligible to receive
recovery rebate payments of $1,200. Families will also be receiving $500
per child.
Under the CARES Act, according to
Bishop, unemployment insurance benefits (UI benefits) are also expanded to
cover those who are self-employed and independent contractors—two types of
workers not typically covered by UI benefits. However, these benefits are not
available to those who can work remotely or are already receiving paid leave
benefits.
Stephanie Czuhajewski, CAE, the
executive director of the ADA, advised the town hall attendees to reach out to
ADA should they have questions or need clarifications.
To view the ADA town hall meeting and
other resources for private practices, visit https://www.audiologist.org/audiologists/covid-19-resources.
To support small business owners in
the midst of COVID-19, the Academy of Doctors of Audiology (ADA) hosted a town
hall webinar on April 1, to discuss the CARES
Act, signed into law on Friday, March 27, to provide economic relief to
individuals and businesses facing hardship or economic ruin. In addition, this
new legislation will impact
hospitals and public health, education, state and
local governments, and the federal safety net.
The most pressing topic discussed was
the Paycheck Protection Program (PPP). The program, administered by the Small
Business Administration (SBA), provides small
business emergency loans to borrowers impacted by COVID-19.
Scott Bishop, MBA, JD, general
counsel and director of corporate development at Audigy, went into detail about
the loan and its generous loan forgiveness component. He stated that the loan
is to be used for payroll costs, healthcare benefits, mortgage interest, rent,
and utilities. Borrowers are then eligible for loan forgiveness equivalent to
the sum spent on these covered expenses during the first eight weeks of the
loan’s use.
Bishop also noted that the maximum
loan size is equivalent to 250 percent of the employer’s average monthly
payroll costs or $10 million, whichever amount is less. The loan also has a
deferred payback of six to 12 months, an interest rate of four percent, and fee
waivers.
Owners of private health practices
that have already applied for Economic Injury Disaster Load Assistance (EIDLs)
can refinance the loan as part of the PPP. According to Bishop, there is no
clear guidance on how this will be done but there is a section on the PPP’s
application asking the borrower if they have received an EIDL.
However, an EIDL comes with a $10,000
advance delivered within two to three days, making it a better option for some
private practice owners.
“This is a good opportunity if you
need $10,000 and you need it very quickly; this is probably a better bet as
compared to waiting for an application with the PPP,” said Bishop.
Lesley Kelly, CPA, the other key
speaker at the town hall, went over the PPP application process. Kelly noted
that although lenders will begin processing loan applications for small
business and sole proprietors on April 3, it’s best to start preparing now.
The application is currently live at SBA.gov and the documentation needed to apply will depend on the lender
used. However, Kelly recommends gathering payroll registers from 2019 and 2020,
state and local taxes related to payroll, 2019 tax return or 2019 financial
statements, payments for group health insurance premiums, and retirement benefits
paid in 2019 and 2020. She also noted that verifying this information with an
accountant is vital to receiving the loan with no issues.
“It’s really important that you
verify these calculations as best as you can or work with your accountant to
get these numbers as soon as you can,” said Kelly. “What you put on this
application needs to be your best effort in getting this information.”
Kelly also recommends private
practice owners to contact their local bank to discuss the PPP and to verify
that they intend to support the program.
When applying for the PPP, the
application also must be signed by the sole proprietor or partners owning 20 percent
or more of equity of the business, owners of 20 percent or more of the
corporation or, for an LLC, all members owning 20 percent of the company.
Bishop also quickly summarized the
Direct Payments to Individuals portion of the CARES Act during the town hall,
reminding owners of private practices that they are eligible to receive
recovery rebate payments of $1,200. Families will also be receiving $500
per child.
Under the CARES Act, according to
Bishop, unemployment insurance benefits (UI benefits) are also expanded to
cover those who are self-employed and independent contractors—two types of
workers not typically covered by UI benefits. However, these benefits are not
available to those who can work remotely or are already receiving paid leave
benefits.
Stephanie Czuhajewski, CAE, the
executive director of the ADA, advised the town hall attendees to reach out to
ADA should they have questions or need clarifications.
To view the ADA town hall meeting and
other resources for private practices, visit https://www.audiologist.org/audiologists/covid-19-resources.
Published: 4/2/2020 7:58:00 AM
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