Applying for the PPP Loan Unlike the EIDL loan which had one lender (the SBA itself), each bank will have its own process for applying for the PPP Loan. We do believe, however, that applications will be similar enough that this information will be helpful in your effort to apply. The first step is to calculate 2.5 times your average monthly payroll expenses. For PFG clients, we have calculated this number for you and have emailed this number directly to you. Applications also ask for the amount received under the EIDL loan. If you have not received any money from that program as of the time you apply for the PPP loan, put zero for this question. If you have received funds for the EIDL loan, input that number.
The financial landscape for doctors has changed daily (literally) in the past month; this change has accelerated since President Trump signed the CARES Act on March 27, 2020. In the upcoming webinars listed below, I will discuss the newest information we have and what you should be doing. April 7, 2020 @ 1pm PST Subject: PPP Loan Update and Q&A; what we’ve learned and what to do now. Link to register: https://us04web.zoom.us/webinar/register/WN_zbLrM3_4TSu-Qpaxq3lzGQ April 10, 2020 @ 1pm PST Subject: COVID-19 financial recap, lessons learned, what you should be doing now, and Q&A. Link to register: https://us04web.zoom.us/webinar/register/WN_N131eciwSU6Ox1ZAHWIrwg
In this webinar, Nate discusses the PPP Loans and gives guidance regarding the timing and strategy of utilizing this benefit. See the full webinar by following the link below (the content of the presentation starts at about 3 minutes and 30 seconds into the video): Webinar Recording – PPP Loan Update and Q&A Slide Deck – PPP Loan Updates
Paycheck Protection Program (PPP) Loan Updates (4/8/20): Right now, the big question for small business owners is: “When should I apply for the PPP Loan?” For updates on our recommendations surrounding the timing of the PPP loan, see our blog post here: When to Apply for the PPP Loan
Emergency EIDL Grants (Section 1110) The rumors are true. Through an SBA loan, you can be granted up to $10,000.00 if the money is used for staff costs, rent, business debt payments, or other business expenses that you can’t pay because of revenue loss. We give detailed instructions on how to apply for this loan here: https://practicefinancialgroup.com/apply-sba-economic-injury-disaster-loan-eidl/
As recommended in a previous communication, we recommend applying for the EIDL loan; the first $10,000.00 will be a “grant” (free money) from the government if used for the following: Providing paid sick leave (not applicable if your office is closed) Maintaining payroll (not applicable if office is closed) Making rent or mortgage payments (yes, applicable if you pay rent or if you have a loan on your building, a practice purchase or equipment loan) Repaying obligations that cannot be met due to revenue loss (other bills) To clarify, we recommend borrowing $10,000.00 on this loan; this is free money. Any additional amount you borrow is a formal loan that you will have to pay back; we only recommend you borrow more money if you actually need it.
New Guidance on Employees – updated March 27, 2020 We are not employment law or HR experts. We have never claimed to be. But if you wake up and see your neighbor’s house burning down, do you sit back and watch because you’re “not a fireman?” (maybe it depends on which neighbor ?) This post is not intended to be a comprehensive FAQ on all employee-related issues. A few sources we have been turning to for clarifying advice, which we recommend to you, are: HR for Health Bent Ericksen & Associates Additionally, we have been reading the text of the actual bills that have been passed recently, searching for relevant guidance related to your practice.
With each passing day we learn more info about this “New COVID-19 World Order” that we live in. Our hope is to be as helpful to you as we can during this time. Here are some additional thoughts to share that we hope will be helpful: What should I do? Financial principles don’t change; the application of those principles – the strategy you should employ – will depend upon your circumstances. Some of our clients continue to operate their practices and don’t plan – at least for now – to shut down. If you’re open for business as usual, keep going as long as you can. Even in these circumstances, we recommend caution against the day when you do get shut down. But if your office is shut down, you’re in a completely different camp and you should employ an emergency cash strategy. The rest of this email is directed …
Last week we sent out some guidance regarding your investments during a panic/crisis like the one we’re currently experiencing. During this crisis, many people will panic and sell at low values. During this crisis there will be very little real, long-term wealth lost; but there will be massive amounts of wealth transferred. This wealth will transfer from weak to strong hands and from scared to brave hands. But this note is not about investments, it’s about surviving in your practice during a time where business may stop. We are getting a lot of questions about cash flow and what to do with employee pay. Let me try to address those generally. To get specific answers, please contact your PFG advisor directly.
Dimensional Fund Advisors (DFA), who manages most of our clients’ money (including our own), recently released this article relating to COVID-19. I recommend you read it: The Corona Virus and Market Declines For years I have been advising clients to do the following with regard to their investments: Focus on investing as much as you can. Pray that the markets go down – another 2008 would be best. When it comes to #2, I get weird looks and snickers implying that I’m joking. I’m not. Unless you’re going to market to sell, market declines are the best indicator of future returns, and they are your friend. This isn’t my opinion or some contrarian perspective. It’s math.
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