PPP2 Loans – as a reminder, you will qualify for a PPP2 Loan if your Fee Income is down at least 25% or more for any calendar quarter when comparing 2020 to 2019. Your best chances of meeting this requirement are Q2 2020 vs Q2 2019. If you have not done so, you are welcome to use the attached spreadsheet to perform this computation.
Many clients are asking me – “should I apply for the PPP2 Loan”? I would quickly respond with a “YES” but, I am also respectful to those of you, that are not interested in a “Government Handout”. Whatever your decision is, I will respect it.
How will the PPP2 Loan work? – the rules will be the same as the PPP1 Loan. You must spend the funds within a 24 week period and the allocation of such is still 60% for Payroll Covered Costs and 40% for Other Covered Costs. The PPP2 Loan will equal 2.5x your average monthly payroll for 2019, the same as PPP1.
PPP1 Loans – When should I file for forgiveness? As you may recall, you have 10 months to file for forgiveness from the end of your 24 Covered Week Period. If your Practice is down by 50% or more in calendar quarter comparison from 2019 to 2020, you will qualify for the ERC – The Employer Retention Credit. If this is the case, you should hold off on filing for Forgiveness of the PPP1 Loan because you will need to SAVE some wages from the PPP1 and use them for the ERC computation. I have built a spreadsheet to support this. It is very very complicated and hard to understand, but I will share it with you this coming Sunday at 12 Noon. I am hoping the Banks will program their Portals to allow such information to be entered with the Banks Computers computing such Credit. Let’s be patient and see what transpires.
HHS Provider Relief Grants – Today ( January 15, 2021), the Portal of the Department of Health & Human Services is supposed to open, to allow us to submit various financial information on how you spent the HHS Provider Relief Grant(s). I am hoping in addition to the actual COVID Expenses incurred, the Department of HHS will allow us to use the loss of Gross Revenue. Let’s wait and see what their Portal calls for. We will address this on Sunday too!
Please reach out to your Schiff Team Member for any Financial Information you may need for any of these Government Programs. We are just an e-mail away!
Finally, I will be hosting a ZOOM Meeting on these topics, this coming Sunday at 12 Noon. Here is the Zoom Link Info:
Allen Schiff is inviting you to a scheduled Zoom meeting.
Join Zoom Meeting – https://us02web.zoom.us/j/84365302687
Meeting ID: 843 6530 2687
One tap mobile
+13017158592,,84365302687# US (Washington D.C)
+19294362866,,84365302687# US (New York)
Dial by your location
- +1 301 715 8592 US (Washington D.C)
- +1 929 436 2866 US (New York)
- +1 312 626 6799 US (Chicago)
- +1 669 900 6833 US (San Jose)
- +1 253 215 8782 US (Tacoma)
- +1 346 248 7799 US (Houston)
