March 31, 2020In: Therapy News & Events
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 providers 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:
Eligibility: Generally speaking, if your business (together with any affiliated businesses) has fewer than 500 employees, you should be eligible to participate.
Loan Amount: The 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 Forgiveness: The 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.
Maturity: To the extent not forgiven, loans will have a maximum maturity of 10 years.
Application Submission: Applications will need to be submitted to SBA-approved lenders. Application forms, required certifications, and an outline of the application process should be forthcoming from the SBA in the next few weeks. Follow with your SBA bank for details, requirements and restrictions.
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.
The ClinicSource Team