April 27, 2020 by ChiroTouch Article COVID-19, Business Management
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Updated 4/27/2020:

Rebooted with an additional $310 billion in funding, the SBA resumed accepting Paycheck Protection Program applications from participating lenders as of Monday, April 27, 2020 at 10:30am EDT. For more on this news and how to apply, click here.

Original post:

To our valued customer,

First and foremost, we hope that you, your family, your friends, your colleagues and your patients are safe and healthy.

Second, as chiropractors you are very likely experiencing financial strain due to the COVID-19 pandemic, like all of us. We have been researching the new stimulus bill (CARES), small businesses will have a financial assistance option soon.  While we are not experts in the bill, we have provided information below that may help you obtain all available funding support as quickly as possible.

The Small Business Administration (SBA) has been directed to fund new loans to small businesses that will be partially or fully forgivable if proceeds are spent on qualifying expenses. These loans will be offered and administered by banks participating in the SBA program. While these loans are not yet available, they will become available in coming weeks after the SBA provides guidance to the banks participating in the program. Thereafter, these special loans should be available to qualifying small businesses until June 30, 2020.

If you have interest in applying for a loan under this new program, we encourage you to reach out to a bank participating in SBA programs to discuss your options. A list of the 100 most-active SBA-qualified banks can be found at the following link: https://www.sba.gov/article/2020/mar/02/100-most-active-sba-7a-lenders

While the final parameters, terms and conditions of this loan program will be determined by the SBA and banks participating in this program, highlights of this new SBA loan program are expected to include the following:

EligibilityGenerally speaking, if your business (together with any affiliated businesses) has fewer than 500 employees, you should be eligible to participate.

Loan AmountThe loan is calculated by multiplying 2.5 and the trailing twelve-month average monthly payroll cost. For example, if the average payroll has been $30,000 over the past year, the loan amount could be $75,000.  You will want to consult with an SBA-approved bank as to the specific considerations for your practice.

Loan ForgivenessThe loan principal is expected to be forgivable so long as proceeds are used for qualifying expenses (e.g., rent, payroll, utilities), except to the extent of workforce reduction.

Interest Rate:  The maximum interest rate is 4% per annum.

Guarantees/Collateral:  There should be no personal guarantees or collateral requirements.

MaturityTo the extent not forgiven, loans will have a maximum maturity of 10 years.

Application SubmissionApplications will need to be submitted to SBA-approved lenders. Follow with your SBA bank for details, requirements and restrictions. You may find the loan application here: https://covid19relief.sba.gov

On April 1, 2020, the U.S. Chamber of Commerce released a Coronavirus Emergency Loans and Small Business Guide and Checklist. It goes into more detail on eligibility, lender requirements, loan maximums and forgiveness, as well as, next steps. View it here.

Help is on the way for many of you.  We look forward to getting through this and working with you over the years to come.  Thank you for your continued support as we navigate this challenge together.  We wish you and yours good health.

Kind Regards,

The ChiroTouch Team

 

ChiroTouch provides this information with the understanding that authors or speakers are not experts in finance, regulatory policy or law. ChiroTouch shares this information to the best of our knowledge and experience. The information is subject to change as the COVID-19 crisis evolves.

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