North Texas Dentistry Special Issue 2020 NTD SP ISSUE 2020 DE | Page 22

financial
IN NEED OF
RESCUE
Important Financial Assistance Opportunities from the CARES Act
by Jeramy Smith, CPA
The CARES Act was signed into law on March 27, 2020. There are
many opportunities included for business owners to get financial
assistance, obtain refunds, or delay tax payments.
This summary is not intended to explain the benefit or the requirements
of each opportunity fully. It is intended to inform you of various
opportunities available so that you can determine, along with your
financial professionals, which options may help you and your business
during this time.
SBA Economic Injury Disaster Loan (EIDL)
This SBA program began accepting the streamlined application
March 29, 2020 which made the EIDL much easier to apply for. There
are two pieces to the EIDL application. First, there is an advance
grant of $1,000 per employee, up to $10,000. Second, there is the
loan portion that has an interest rate of 3.75% and up to a 30-year repayment
term. This loan is applied for directly with the SBA and can
be used for most business expenses. Available funds are limited.
SBA Paycheck Protection Program (PPP)
This popular program provides a loan of 2.5 times the monthly average
payroll costs for a business. This loan is applied for with banks, credit
unions, and online lenders. The lenders then submit the application
to the SBA to obtain a loan number. These loans can be forgiven if,
during the 8-week period after the money is received, at least 75% of
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