On April 21, the U.S. Senate passed legislation to replenish depleted funds to help business during the COVID-19 pandemic. Specifically, the legislation adds $370 billion to the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL), including the grants for EIDL applicants.
The PPP is a fully forgivable loan for small businesses, whereby endodontic practices that keep all of its employees on the payroll for eight weeks and use the vast majority of loan money for payroll, rent, mortgage interest, or utilities, will have the loan entirely forgiven. Small businesses can receive up to the total of your monthly average payroll cost in 2019, multiplied by 2.5, not to exceed a total of $10 million.
Meanwhile, If your small business has suffered substantial economic injury and is located in a declared disaster area, you may be eligible for the EIDL. Substantial economic injury means the business is unable to meet its obligations and to pay its ordinary and necessary operating expenses. The loan offers as much as $2 million per applicant. EIDL applicants are also eligible for an emergency grant of up to $10,000 remitted within three days to immediately cover expenses for COVID-19 related sick leave, mortgage, rent and necessary overhead. For more information or to apply, visit the SBA’s EIDL site.
While the SBA has not yet re-opened its PPP and EIDL for new applications, availability is expected to be imminent. Please continue to visit the SBA links provided above to check if you may apply.