As promised the SBA has released the final calculation and application for the Paycheck Protection Plan (PPP) 7(a) Loan. This morning banks are doing their best to be ready for processing, but many are not yet ready yet. Please be patient with your bank. Also, it is important that you apply for the PPP loan at the bank where you already have an established banking relationship.
As we promised, we are providing instructions for you to help you complete the application. The good news for us is that we are a part of the Academy of Dental CPAs (ADCPA), and with that membership comes a tremendous amount of information we can share. One of the CPA groups in our network has created an instructional video for the PPP loan. Click on the Breaking News Video below to watch a brief yet very informative instructional video to help you complete the SBA PPP Application.
In addition, we have preliminary information that seems to confirm that, if you need, you will be able to delay receipt of the money from the PPP loan for three to four months. This delay in receipt of funds is important because of the eight-week forgiveness period that starts when you take receipt of this money. Ideally, you do not want to receive the PPP loan if your practice is still closed. By timing the receipt of the money with the reopening of your practice, you will maximum the amount of loan forgiveness. We want to emphasize that the ability to delay receipt of the loan proceeds has not yet been confirmed. We are still waiting for the final word on this provision. Once approved, talk to your Fluence team before you sign and take the proceeds so we can strategize on timing. Make sure your bank will allow you some breathing room, from application approval date to closing date of loan/proceeds given.
You may wonder why is there a rush to apply for the loan. There are still concerns that funding for the PPP loan could run out. Additional money may be available, but nothing is guaranteed at this time. That is why we advise you to apply for the loan sooner rather than later. Please don’t panic as it may be a few days before banks are accepting applications.
As mentioned in our last blog, if you are a Fluence client and you want us to help you with the calculations, please contact us ASAP to get on our list. We are processing calculations for clients now.
Finally, a special thank you to Mark Rosen CPA, CFP and Jeff Kristoff, CPA at Rosen & Associates, LLP, out of Boston, MA. for putting this video together and allowing us to share it!
Please note that the video and the information in our blog are based on what we know right now. Information surrounding the SBA loan process is constantly evolving. We will keep you updated as we learn more. Please click below for the video.