On December 27th, 2020, the President signed a new $900 Billion COVID-19 relief stimulus package into law. This package includes substantial funding for small business through the Paycheck Protection Program (PPP).
Paycheck Protection Program (PPP)
As of 12/27/20, the legislation includes the following important information surrounding PPP and Tax Deductions:
The new COVID-19 relief bill also:
A $2.2 trillion legislation package that was signed by President Trump on March 27, 2020 to provide needed support for health care resources to fight COVID-19 and prevent severe US economic downturn. Practice owners can now apply for government guaranteed loans, some of which will be forgiven.
The CARES Act also allocated $349 billion to the Small Business Administration to guarantee loans to small businesses, including Dental and Medical practices, that have been impacted by the coronavirus pandemic. There are also provisions to help small businesses keep workers employed during the economic downturn. Known as the Paycheck Protection Program (PPP), the initiative provides 100% federally guaranteed loans to small businesses. An additional $310 billion was added to this program on April 23, 2020. The CARES Act includes an infusion of $175 billion to the Public Health and Social Services Emergency Fund (the "Provider Relief Fund") to directly cover costs of hospitals, health systems, and other providers related to COVID-19.
Updated as of January 7, 2021
SBA (Small Business Administration) loans and Paycheck Protection Program (PPP). Loan forgiveness available if you can demonstrate retention of workforce.
Key Benefits for Dental and Medical Offices:
The Provider Relief Funds supports American families, workers, and the heroic healthcare providers in the battle against the COVID-19 outbreak. HHS is distributing $175 billion to hospitals and healthcare providers on the front lines of the coronavirus response.
Allows employers and self-employed individuals the ability to defer payment of the employer share of the Social Security tax that they are otherwise responsible for paying to the Federal government. This is an alternative to the SBA loan (i.e., either/or).
Provides a payroll tax credit for 50% of wages by employers to employees capped at $10K, resulting in maximum credit of $5K per employee. Not available to entities that receive an SBA PPP loan.
What Dentists Need to Know About the New COVID-19 Economic Relief Bill Watch video »
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*The information contained herein is intended to be informative in nature, and is not intended to be a substitute for professional advice. The information was obtained from sources we believe to be reliable, but is not guaranteed. This situation is dynamic and continuing to change daily. Henry Schein does not undertake any obligation to update or revise any statements contained herein, or correct inaccuracies whether as a result of new information, future events, or otherwise. Dental and Medical professionals must make their own business decisions and may wish to seek professional advice before acting with regard to the subjects mentioned herein. Nothing contained herein should be treated as legal, business, accounting, international, insurance, tax, financial or other professional advice.
The information contained herein is changing continuously and the following website should be accessed for real time updates: https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses
Last Updated on January 7, 2021