Good Afternoon Everyone,
We need some help from the forum or Paulie himself!
My question is about PPP Round 2 calculations and whether you have to count the money you received via the Provider Relief Fund (a grant that does not have to be paid back & was given out by the DHHS to practices to help keep them from going out of business).
Our practice is in a predicament. We received money from the Provider Relief Fund and therefore aren’t quite 25% down for the quarter of 2020 that comes closest to qualifying. If we have to count this PRF money as income, we are down only 23.5% and do not qualify for PPP Round 2 (which requires business to be down 25%). If we don’t have to count this PRF money, we are down 29% for the quarter and easily qualify for PPP Round 2.
Can anybody answer that question- do we have to count the Provider Relief Fund money as part of our gross revenue or can we back that out (similar to PPP round 1 money)? Our accountant and bank disagree.
Ben Meares, MD
Good luck finding this out…many have been wondering the same thing.
From the article:
“The definition of gross receipts is clearly intended to be all-encompassing by including revenue from whatever source. While first draw loans are excluded from the definition, it is unclear whether other forms of COVID relief (like provider relief funds through the department of Health and Human Services, or Economic Injury Disaster Loan funds) constitute gross receipts.”
So it’s about as clear as mud.
Because the bank is issuing the loan, I’m guess their answer trumps your accountants.
we are having the same issue!
One could argue that the money fro. DHS is a grant and not business revenue. However, the all-encompassing gross receipts could be interpreted a variety of ways…with so many medical practices having received grants, it is surprising that they didn’t include some guidance. This far, I’ve not seen anything that would allow the exclusion of the grant funds at this time. Best bet is to ask the bank for clarification on their standards/interpretation of such funds.
My question is similar. Can targeted payments and Shared Savings be excluded and annotated as such?