Jul 12, 2021
For dentists getting their first-time payroll protection loans, a loan forgiveness deadline may be on the horizon.
Depending on when the borrower received the loan and used the funds, the forgiveness period may fall within July-September of this year. For example, for borrowers who received their loan funds in April 2020 and opted for an eight-week coverage period, the deadline may be as early as July. Borrowers who received funds in April 2020 but opted for a 24-week insurance period will have to apply for forgiveness before the end of this year. ADA encourages dentists who have questions about when the forgiveness period ends to contact their lenders.
According to Small Business AdministrationBorrowers who have received a payroll protection program or PPP loans are eligible for full loan forgiveness if they meet the following criteria within the 8-24 week coverage period of their loan:
• Supported employees and pay levels.
• Used the loan to cover salary and other eligible expenses.
• At least 60% of the wage loan has been spent.
The SBA also noted that borrowers can apply for forgiveness at any time before the maturity date of their PPP loan. For borrowers who have not applied for forgiveness within 10 months after the last day of the covered period, the PPP loan repayments are no longer deferred and will need to start making payments on the PPP loan to their lender.
The Payroll Protection Program is a loan established by the Coronavirus Relief, Relief and Economic Security Act in March 2020 to provide small businesses with a direct incentive to retain or re-hire their employees.
To apply for forgiveness for loans up to $ 150,000, download Form 3508S…
To apply for loan forgiveness over USD 150,000, download Form 3508…
For information on ADA’s advocacy efforts during COVID-19, visit ADA.org/COVID19Advocacy…