Great summary of the Paycheck Protection Program (PPP) offered through the SBA.
USCoC_PPP_Summary.pdf (82.7 KB)
1 Like
Excellent. Thanks. Great to see some real information flowing and thanks for organizing.
I read a similar article from the “US Senate Committee on Small Business and Entrepreneurship” FAQs on PPP as it relates to determing the payroll total for any pediatric group and it reads: "Payroll costs include employee salaries (up to an annual rate of pay of $100,000), hourly wages and cash tips, paid sik or medical leave, and group health insurance premiums. My question - when determining the total expenses for payroll, are providers that have an annual salary greater than $100k not included at all in payroll total or capped at $100k? (i.e. provider annual salary is $125k - are they counted as $100k or $0?)
Depending on the corporate structure and how you paid the physicians, the $100k limit is a cap- not an exclusion of those individuals.
If a physician made $150k as a W2 employee, the first $100k would be considered in the formula to figure out the maximum loan amount. In terms of the forgiveness, the maximum you can apply to any single employee is $8,333 per month ($100k divided by 12) or $3,846 per payroll period if you pay bi-weekly.
2 Likes
Paulie - We spoke with our local banker today and his guidance to pursue PPP loan is working directly with local banker v/s SBA.gov application form 5. It sounds like there will be more shared regarding how to pursue PPP loan this week or next. We filed an application, form 5 through SBA.gov last week but upon additional investigation/discussions, it appears we filed for the EIDL loan. Just sharing.
Jeff-
You are correct…PPP should be sumbitted to your bank and the EIDL should be through the SBA website.
Intersting. We were under the impression that we had to apply to SBA first for the PPP loan and then they would give the clearance for us to get PPP loan through local bank. Question, is the loan application only through local bank and SBA stays out of the process? I have not heard this, but granted another 4 hours has passed. Our local bank is having an internal information meeting tomorrow, and hopefully we will learn more then. We have submitted application to SBA and contacted our local bank. For us PPP loan is the key, not EIDL, but realize everyone is in different boat. Can’t stress enough that every practice should be applying for PPP loan ASAP. Key for employer and employee. They can’t get these rules written fast enough, we are all chompin at the bit.
The banks are the primary contact for PPP loans are processing the paperwork for them. So, if interested in PPP, contact your bank (whenever they are ready to start accepting paperwork).
Great. Thanks. Will call again to 5/3rd tomorrow.