Good Morning Schiff Dental Clients!
Happy Wednesday! I hope each of you are safe and well!
We are here for you!
Here is an update, as of Wednesday, April 15, 2020 12 Noon
Many of you, since Monday of this week, have started to receive your EIDL Grants. We will need to know if you received your EIDL Grant, what day you received it and to what amount. The reason for this is, the EIDL grant will impact the overall loan forgiveness of your PPP Loan. Please e-mail your Schiff Team Member, so we can track such information.
EIDL Grants – if you are a 1040 Schedule C Taxpayer with employees and / or a Partner in a Partnership IRS form #1065 Schedule K-1 with employees
If you meet one of these criteria, please be certain you are maximizing your EIDL Grant to the max of $10,000 per practice. If you have more than 10 employees, your maximum EIDL Grant will be limited to $10,000. However, if you have 6 employees PLUS yourself as a self employed individual, you should receive $7,000 and not $6,000. If this is the case, I am suggesting you call the SBA at 800-659-2955, and explain to them , you are also employed at the practice and as a self employed individual. Please be sure to have your Federal ID# available at the time of your call to the SBA.
Many of you are receiving your EIDL Loans from the SBA. What we would like you to do, is to set up a separate Checking Account with your Bank as well as set up a separate General Ledger Account within your QuickBooks / Peachtree file as well. The reason for this is, we will need to render an accounting to the SBA, to confirm you are spending of your EIDL Loan funds are in accordance with your Loan Agreement with the SBA. These funds are open to audit over the next three (3) years. Please do NOT use the EIDL Loan for Payroll. You can use the EIDL Loan for current accounts payable, current vendor bills like Dental Supplies, Lab Fees and other related overhead, etc.
PPP Loan Funds
Many of you are receiving your PPP Loans from your respective Bank. What we would like you to do, is to set up a separate Checking Account with your Bank as well as set up a separate General Ledger Account within your QuickBooks / Peachtree file as well. The reason for this is, we will need to render an accounting to the SBA and your Bank , to confirm you are spending of your PPP funds are in accordance with your Loan Agreement with your Bank. These funds are open to audit over the next three (3) years.
The current US Treasury regulation state, once the SBA approves your PPP Loan, the Bank must disburse the funds to you within 10 days. Once you receive the PPP Funds, you have “8-weeks” to spend them in accordance with the CARES ACT. We would like you to inform your Schiff Team Member when you receive your PPP Funds, so we can track them and also create a “Game Plan” for you in terms of spending in order to afford you , the maximum loan forgiveness. We will also need to know if you received your EIDL Grant (see above), what day you received it and to what amount. The reason for this is, the EIDL grant will impact the overall loan forgiveness of the PPP Loan.
*** PLEASE HOLD YOUR PPP LOAN PROCEEDS as of now, until we gain further guidance from the SBA, the US Treasury and the ADA. We are hoping the ADA will be successful with their lobbying, thereby creating a delay as to when we have to spend the PPP Loans. My fingers are crossed, hoping we can spend them when we all go back to work! I will confirm with you as soon as I hear. But for now, please HOLD YOUR PPP FUNDS and do not spend them.
Availability of PPP Loan Funds
Yesterday, we were informed from our sources within the ADA and the SBA, the PPP Loans will be fully funded by this Thursday, April 16, 2020. So, if you have already filed for your PPP Loan with your Bank, you should be in line to receive your allotted 2020 PPP funds!
Baltimore City ? – if your Practice is located in Baltimore City …please read on!
Today, the City of Baltimore announced a partnership with Goldman Sachs and Lendistry to provide $10 million in potentially forgivable SBA Paycheck Protection Program loans to help vulnerable Baltimore City small businesses, including non-profit organizations, weather the economic impact of COVID-19. This program is made possible through the federal government’s C.A.R.E.S. Act and Goldman Sachs’ Small Business Stimulus Package. This fund targets underserved businesses, including those which do not currently have a relationship with a traditional bank.
In partnership with Goldman Sachs, Lendistry, a Community Development Financial Institution (CDFI) and an SBA authorized PPP lender, will begin accepting applications immediately. To apply, click HERE.
Lendistry also offers online technical assistance to applicants, including their PPP Resource Guide and Payroll Resource Guide, which can be easily found on their homepage.
Applicants should have the following documents on hand before applying:
- 12 months of payroll documentation, including wages, health and retirement benefits and state taxes paid
- Primary owner’s photo ID
- 2019 Tax Return, or 2018 Tax Return & 2019 Year-End Financial Statement, or 2019 1099
- Corporate Documents (varies by entity type: Articles of Inc., By Laws, Operating Agreement, Fictitious Business Name, Partnership Agreement)
Applicants can also contact Lendistry directly at 1.844.662.7297 or firstname.lastname@example.org.
Baltimore Development Corporation
I hope you found the above informative. If you have any questions, please e -mail your team member at Schiff!
Please stay well!
We are here for you!
My best to all