Loans Expected to be Exhausted Quickly: Prepare Your Materials Now
Surgeons in private practices impacted by the COVID-19 outbreak are advised to begin preparing necessary materials now to apply for assistance from the U.S. Department of the Treasury’s Paycheck Protection Program (PPP) – a key portion of the CARES federal economic stimulus package that authorizes up to $349 billion toward job retention and certain other expenses.
The Treasury Department and U.S. Small Business Administration (SBA) expect to have this program operational as early as Friday, April 3, with loan applications approved the same day. Most banks are expected to require a pre-existing banking relationship with the applicant for a PPP loan; therefore, it is strongly recommended to first apply for a loan at a bank where you already have an account.
Surgeons should immediately begin preparations to finalize their PPP applications and remain in contact with their lenders to identify the earliest opportunity to make their loan available.
All loan payments will be deferred for six months. Most importantly, the SBA will forgive the portion of the loan proceeds that are used to cover the first eight weeks of payroll costs, rent, utilities and mortgage interest. Small businesses and individuals who are self-employed or independent contractors – including plastic surgeons – are eligible if they also meet program size standards.
Applications will be accepted through June 30, but many experts believe the funds will be exhausted in a very short time period.