Πέμπτη 2 Απριλίου 2020

Unpacking the CARES Act: Policies Affecting Audiology Practices

Unpacking the CARES Act: Policies Affecting Audiology Practices:

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.
Published: 4/2/2020 7:58:00 AM

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