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Financial Relief FAQs

Information pertaining to topics covered in this document is rapidly changing and should not be considered legal advice.

General Questions

  • Should I pay a third-party to help me apply to SBA loans?
    We recommend you do not do this. The loan application process is simple and can be completed by your current bookkeeper, accountant, or administrator.

  • Will the money for the SBA loan programs run out?
    Probably yes, and potentially very quickly. As of 4/7 $50B of the $250B fund was utilized. Congress may approve additional funding as soon as Thursday 4/9.

SBA – Paycheck Protection Program

  • What can I use the PPP loan for?
    Loans can be used for compensation to employees in the form of salaries, vacation time, leave, severances, benefits, and associated taxes. Non-payroll costs may include operating expenses such as rent, utilities, and mortgage interest payments. Loans cannot be used for mortgage principal payments.

  • Can the PPP loan be forgiven? What are the conditions for forgiveness?
    Yes, the loan can be forgiven in full including both principal and interest provided.
    • The loan must be used in the 8-week period following origination. Forgiveness will be determined by your lender within 60 days loan approval.
    • The number of staff is maintained.
    • The wages of staff are maintained at least 75% of normal for employees earning less than $100K/year.
    • Not more than 25% of the total amount is spent on non-payroll costs.
    • Staffing levels made between February 15th and April 26th are reinstated by June 30th.
    • The loan must be used in the 8-week period following origination. Forgiveness will be determined by your lender within 60 days loan approval.

  • How do I calculate the maximum loan amount?
    Aggregate all payroll costs from the last 12 months and subtract any amount paid to an employer or contractor in excess of $100K per year. Divide by 12 to arrive at a monthly average and multiple the amount by 2.5. Subtract $10K if you have applied for an EIDL grant. Payroll costs includes wages, vacation time, leave, severances, benefits, and associated taxes.

  • When do I have to begin repaying the PPP loan?
    Repayment starts 6 months after the loan disbursement.

  • Is the forgivable loan amount considered taxable incoming?
    No, the forgivable amount is not considered income for tax purposes.

  • Can I reduce staff after the loan originates?
    Yes, although the amount forgiven would be reduced. While specific guidance has not been issued, it is likely staffing levels could be changed 8 weeks after the loan originates without jeopardizing forgiveness eligibility.

SBA - Economic Injury Disaster Loan

  • What can I use an EIDL for?
    Fixed Debts, payroll and related benefits, accounts payable and other expenses that cannot be paid because of the disaster’s impact.

  • How long do I have to repay an EIDL?
    Up to 30 years. There is no pre-payment penalty if you would like to pay it off earlier.

  • Where do I apply and how long will it take?
    The Economic Injury Disaster Loan is processed through the SBA, not your bank. Applications are simple to complete and should take only about 20 minutes. Applications are filed online at https://covid19relief.sba.gov/

  • How much can I borrow?
    The SBA will determine how much you are eligible for. Generally, it is six months of operating expenses up to $2M.

  • Is a personal guarantee required?
    No guarantee is required on loans under $200,000.

Main Street Lending Program

  • What is the maximum amount for businesses who “zero-out” at the end of the year since these groups would have very little EBIDTA?
    Guidance has not been provided on this issue. Our hope is that there could be additional “add-backs” added to normalize the EBIDTA calculation.

  • Do I have to keep all employees and payroll costs if I receive a Main Street Lending loan?
    Businesses are committing to make “reasonable” efforts to maintain payroll and employees, but no other specific guidance has been published.

HHS Stimulus Payments

  • How do I receive the stimulus payment?
    The stimulus payment is processed EFT through UHC unless you receive paper checks from Medicare or UHC. Paper checks will be mailed a few weeks later and will likely come at the end of April. EFT payments will indicate HHSPAYMENT on your banking statement. A phone number is available for questions at 866.569.3522.

  • Does my practice still qualify if it currently does not provide diagnosis, testing, or care for individuals with possible or actual cases of COVID-19?
    HHS has stated: “If you ceased operation as a result of the COVID-19 pandemic, you are still eligible to receive funds so long as you provided diagnoses, testing or care for individuals with possible or actual cases of COVID-19. Care does not have to be specific to treating COVID-19. HHS broadly views every patient as a possible case of COVID-19.” The HHS will likely issue additional guidance here.

  • Are there limitations on how the stimulus payments can be spent?
    Yes, but unfortunately, the exact guidance isn’t very clear. The HHS indicates that funds can be used by “those providers who are struggling to keep their doors open due to healthy patients delaying care and cancelled elective services.” The breadth of this statement leads us to believe that these funds can be used for general operating purposes.

  • Is there other fine print or “string” attached?
    Yes, as with many other incentives there are certain terms and conditions. Within 30 days, providers must attest to the following:
    • For out-of-network billing scenarios, providers will not seek patient out-of-pocket payments from a COVID-19 patients (actual or possible) greater than what they would have paid if they were in-network.
    • If more than $150K is received under any government support program, a report must be submitted each quarter detailing where the funds were spent.
    • A full list of terms is available at https://www.hhs.gov/sites/default/files/relief-fund-payment-terms-and-conditions-04092020.pdf

  • Do I need to keep a record of how the money is spent?
    Practices must maintain cost documentation to substantiate that they have reasonably complied with the terms and conditions. Records may be requested for audit purposes in the future and having the appropriate documentation on hand is important to ensure compliance with the program’s terms and conditions.

Medicare Accelerated/Advance Payments

Tax Relief

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