COVID-19 Economic Relief Q and A with Lubell Rosen
The law firm of Lubell Rosen helps doctors focus on their medical practice by taking the stress away from running a practice. The economic effects of COVID-19 have hit medical practices and doctors especially hard. Joshua Sheskin, Esq. an employment lawyer at Lubell Rosen is diving deep into the relief packages available from the Federal Government to educate medical practice owners, and doctors, how to maximize their recovery.
The average amount of time it takes to process an SBA loan is 21 days. After that is an average of three days to get the money direct deposited. However, once you apply, there is $10,000 of economic aid available within 72 hours. If everything the SBA is trying to do goes as planned. This $10,000 is for immediate payroll and operating relief. As long as you use it for that, the amount can be paid out of your second loan payment, and you will not need to pay that money back.
As the owner of a medical practice, how much can I borrow from the government under the CARES act, and will any of the loan be forgiven?
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, recently passed by Congress, allocates $350 billion to help small business keep workers employed during the COVID-19 pandemic. The “Paycheck Protection Program”, contained within the act, provides 100% federally guaranteed loans to small business, including medical practices, that are less than 500 employees.
Yes but your loan forgiveness eligibility will be decreased if you have fewer employees in 2020 than 2019. There are ways to hire back employees, economically, by taking advantage of the act, and doing so will decrease or eliminate the loan forgiveness penalty. We can help you fund the rehiring of employees, through government aid, so you are not penalized.
I Heard New Regulations Keep Coming Out On The Paycheck Protection Program, Is That True, And How Do They Change What Percentage Of My Loan Will Be Forgiven?
The effective date of the PPP was supposed to be April 1, 2020, now it is April 3, 2020, and new regulations come out, sometimes, several times a day. At Lubell Rosen we are on top of these changes, constantly figuring out how they can best benefit our clients.
Why Should I Hire Lubell Rosen To File My Application For Financial Relief Instead Of Doing It Myself, Or Using A Bank Rep Or A CPA For Assistance?
When a doctor hires Lubell Rosen, it is our job to maximize your recovery. In other words, we will use our expertise to figure out how you can get the most money borrowed and more importantly, the most forgiven. While we make no guarantees, in most cases we anticipate that we will easily get more for you than the bank would get and the difference will exceed the amount we are charging.
I hear the rollout of the Payroll Protection Program was rocky, and last-minute changes made the rules different. What are the biggest changes?
The night before the rollout of the Payroll Protection Program, the Treasury Department changed the rules, putting banks front and center as the main bodies through which loans are processed. However the Fed gave the banks few rules about how to be an SBA PPP Lender.
My bank says I do not qualify for a PPP Loan or that they are not issuing them, and other banks will not talk to me because I do not have an account with them. What should I do?
Be patient, the program rolled out last Friday. It was deeply flawed and did not have anti-money-laundering guidance for banks to deal with borrowers who are not already clients of the bank. Hence, the banks do not know, at this point, what will be required to loan money to non-customers.
Is the funding for the PPP running out? Is it too late for me to apply? And which bank is best for me to apply?
It is not too late to apply. However we do recommend applying as soon as possible before funds run out. Just yesterday the government announced additional funding, so it seems likely they will continue to add money to cover loans. But most experts agree it will impossible to cover all requested loans, so those that apply first will be more likely to get their full requested amount.
Yes. In June of 2020 you have to have as many employees as you did in June of 2019, to get full forgiveness. However, that only applies to having that many employees in June of 2020. If you are not able to sustain that number of employees now there are things you can do until June 2020, to reduce your workforce without penalty.
I hear the application form at some banks is two pages, other banks take fifteen minutes to apply, is this true?
No, people mistake the one, or two-page, form they fill out through Suntrust, BB&T, and others, as the full application. What you are really doing is reserving a spot in line for the funding, but you are not applying for the funding yet.