[Updated on April 27, 2020]
Plastic surgeons, dentists and aesthetic practices across the nation have been hit hard by the mandatory closures and safety measures required in an attempt to slow the spread of COVID-19. Fortunately, there is a growing number of resources and relief programs popping up, including emergency funding from the government’s Small Business Association, protection from eviction and business loan deferment. Unfortunately, we are learning that most insurance plans do not cover shutdowns due to pandemic. We’re working diligently to keep up with the list of financial resources available and will be adding to the list below as we find new sources of funding.
SBA Paycheck Protection Program
Funding for the Paycheck Protection Program has opened up again on Monday, April 27, 2020. If you are thinking about applying, we recommend doing so as soon as possible as we expect this new round of funding to go quickly. We will update this post as new information is learned.
The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.
Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—are eligible. Businesses with more than 500 employees are eligible in certain industries.
SBA Economic Injury Disaster Loan Program
Funding for the Economic Injury Disaster Loan Program is beginning to run low. If you have not applied for this program, but are considering doing so, we recommend not waiting. We will continue to update this post with information as we receive it.
As part of its disaster assistance program, the Small Business Association (SBA) is providing low-interest working capital loans of up to $2 million to small businesses affected by the coronavirus. The loans will carry an interest rate of 3.75% and repayment terms vary by applicant, up to a maximum of 30 years. You can use the funds to cover accounts payable, debts, payroll and other bills the coronavirus has affected your ability to pay.
APPLY HERE and select Economic Injury as the reason for application.
State and Local Resources
States and local municipalities are adding programs daily. Head over to the governor’s website for your state to find up-to-date information about relief available specifically in your area. The National Governors Association offers a Find the list of governors’ websites from the National Governors Association HERE. So far we’ve found some sort of program in California, Colorado, Florida, Illinois, Michigan, New York, Oregon, Pennsylvania, Maryland, New Mexico, New Jersey, Washington and others. Many states are also aligning their state and local business tax filing deadlines with the new federal deadline of July 15, 2020.
Facebook Small Business Grants Program
Facebook has committed to offering up to 30,000 small businesses $100 million in cash grants and Facebook advertising credits. The grants will be provided to businesses in more than 30 countries. The company has not released full details yet, but you can sign up to receive more details when they’re available.
Lender and Corporate Small Business Assistance ProgramsMany banks and credit card companies are offering deferment and forbearance to their business loan and credit card customers who are having trouble making payments. Search for your bank on the American Bankers Association’s list of coronavirus response programs.