On behalf of ASIPP, we would like to remind members of additional financing, SBA disaster loan options, and the Employee Retention Credit Programs designed for economic relief for practices/businesses suffering economic losses from Covid-19. For those who may feel the PPP Loans/Medicare Advanced Payments are not enough to fund operations through the crisis, there is another SBA program that could help you.
SBA Economic Disaster Injury Loan for Covid 19
The SBA has an Economic Injury Disaster Loan Program. Click here to find the application.
Some Basic Information:
- Maximum Loan Amount is $2 million, but it is based on your “actual economic injury” as determined by the SBA.
- Same program/application site for those who asked for the $10,000 Emergency Grant from the SBA. Unlike the grant, this additional loan must be paid back.
- Can be used broadly for business operations.
- There are a few restrictions: you can’t use the loan to refinance pre-existing debt or pay dividends.
- No Upfront Fees or Pre-Payment Penalties.
- Loans of $25,000 or less require no collateral.
- Personal Guarantee waived for loans up to $200,000 through December 31, 2020.
- Interest Rate is 3.75% for small businesses. The rate is 2.75% for nonprofits.
- Last day to apply is December 16, 2020.
- You may still be eligible for this loan even if you have already received an SBA PPP Loan, as long as you use it for different expenses. You can apply for both EDIL and PPP. The PPP is designed for payroll protection for 8 weeks and EDIL is intended to cover 6 months of operations.
- The EDIL must be paid back.
Employee Retention Credit Program
The Employee Retention Credit (ERC) is designed to encourage businesses to keep employees on the payroll. The refundable tax credit is 50% of up to $10,000 in wages, paid by an eligible employer whose business has been financially impacted by COVID-19.
Click here for more information on the ERC.