Academy of Dental CPAs shares tips regarding PPP loan forgiveness
October 12, 2020
Allen Schiff, president of the Academy of Dental CPAs (ADCPA), shared the following tips for dentists who are applying for or considering applying for Paycheck Protection Program loan forgiveness. This ADA News story
interviews two member dentists on their PPP loan experiences.
• When do I have to file by?
Loan recipients have 10 months to file after they have chosen a covered period, either eight weeks or 24 weeks. According to ADCPA, most dentist clients have chosen the 24-week period.
• How is the 24-week period measured?
The 24-week period begins on the date the PPP Loan was funded and concludes at the end of the eight or 24-week period. For example, if a loan was funded on May 1, 2020, the recipient would count 24 weeks from the inception date, which equals a Sept. 10, 2020, due date. They would then have 10 months from Sept. 10, 2020, to file for PPP Loan forgiveness.
• What documents will I need to submit?
For dentists who chose the 24-week covered period as mentioned above, they will need to gather the financial documentation in order to support the loan forgiveness during this covered period. Since the initial eight-weeks was expanded to 24-weeks, ADCPA is recommending dentists use their gross payroll for this period in order to gain maximum loan forgiveness. If they are using an outside payroll processing company such as Sure Payroll or another, the company can prepare payroll reports within their system that would mirror the dentist’s covered period as mentioned above (May 1, 2020, through Oct. 15, 2020). The dentist can then use these payroll reports and submit such to your bank.
• Wait if possible.
With Congress considering additional COVID-19 relief legislation that could impact the terms of PPP Loan forgiveness, ADCPA is advising potential forgiveness applicants to wait to apply for loan forgiveness. The group also believes that many lenders have indicated that they will not start processing PPP forgiveness applications until additional guidance is provided by the Small Business Administration and are also awaiting on possible congressional actions that could potentially ease PPP forgiveness application processes.
Editor's note: The information in this piece is not intended to be, nor should it be construed as, tax, accounting or legal advice. Readers are urged to consult a qualified professional when seeking such advice. The ADA makes no endorsement of the above advice, nor of any website or organization mentioned in the above piece.