The topic of Economic Disaster Relief Loans for Chiropractors (and everyone else) is storming every news channel, podcast, and social media outlet right now in the wake of the Coronavirus crisis.
Yes, I understand that these Economic Disaster Relief Loans for Chiropractors are much needed in many cases, but I’m not convinced that these programs are the appropriate route for every chiropractic office or every situation.
In Part 1 of this series, I’m going to discuss the basics of some of the Economic Disaster Relief Loans for Chiropractors (and Grants that are available too) and one program in particular that I think you should definitely apply for.
Then, we’ll dive deeper into some of the other loan programs that are available, which are perhaps a little less clear in their potential benefit to all chiropractors.
Along the way, we’ll also help you navigate the loan process with the Small Business Administration (SBA) and/or your local banks, which is something we do each and every day with our chiropractic practice sales and helping our chiropractic clients sell their practice or purchase a business.
So we’re very familiar with the SBA lending process and how the banks work — which is maybe why I’m also less enthusiastic about all of these Economic Disaster Relief Loans for Chiropractors compared to others who are busy screaming and shouting and telling you to hurry up and get your loans now.
In fact, as you will see in the very first video segment, timing is critical to make the right move for you and your situation.
Hope this series is helpful. Now go to the video and learn the basics about these Economic Disaster Relief Loans for Chiropractors.
After you view Video #1, if you want to get moving on your application, you can apply here for the Economic Disaster Relief Loans for Chiropractors.
Part 2 — Paycheck Protection Program
In this second part of the video series, we will discuss the Paycheck Protection Program loan options.
We’ll cover the basics of what the PPP is, who is eligible, how to apply, etc.
Part 3 — Which Loan Programs are Right For Your Chiropractic Practice
In Part 3 of the video series, we will dive into the details and the math of determining whether the PPP Loan Program is right for your chiropractic practice — and walk you through some scenarios on how to make the best move based on your current office situation.
FAQs on the Subject of Disaster Relief Loans for Chiropractors
Due to the large volume of questions and responses to the disaster relief loans for chiropractors, we are unable to personally respond to individual emails or questions or field calls on this topic. However, if you would like to submit your question (via email or live chat), Dr. Tom will be updating the post with FAQs that many of you are asking. Here are some common questions (and answers) that are coming in.
Q: When will I receive my $10,000 Grant money? I’ve already applied but it has not arrived yet.
A: Unfortunately, the original target date of 3 days after application appears to be true for… no one. We received many emails from chiropractors who have applied but not received their funds. One thing that may have contributed to this is that the federal site was so overwhelmed with traffic that it shut down on April 3, 2020 — which may have contributed to delays. Additionally, there are numerous blog posts and experts who are all in agreement that the applications have overwhelmed the SBA who is helping administer this program.
Q: How long will it take to get my loan or grant money?
A: No one can guarantee a date, but it is clear that the process may take much longer than anticipated (see above). For some context, the SBA normally gets $800,000 loan applications PER YEAR and due to the disaster, they have already received 178,000 applications as of Tuesday April 7 (that’s nearly a quarter of their yearly loan applications that have come in just the last several weeks!)
Q: Can the EIDL Programs Be Used for a Startup Business or Small “Side Hustle”?
A: The “disaster” period is listed as January 31, 2020. At a minimum, to qualify for the EIDL programs, your business entity must have legally been established prior to then. This is certainly not the only qualification, but the program is not necessarily limited to businesses of a certain size. In fact, larger businesses (over 500 employees) have to go through an extended application.
Q: What if my application for EIDL is not approved – will the $10,000 Grant (Advance) need to be repaid?
A: No. Whether your EIDL is approved or not, the advance (grant) does not have to be repaid, according to the SBA program guidelines.
Q: What are the tax implications of these loans or grants?
A: Most experts agree that the “forgivable” portion of the loans (including the Grant or Advance that does not have to be repaid) will have no added tax consequences. There is still uncertainty about the remaining portion of the loans that are not forgivable. For discussions, see here, here and here
Q: Can I apply for both the EID Loan and the PPP Loans?
A: Yes, with certain limitations. See Video 3 for discussion.
Q: Does the PPP Loan make calculations based on Gross or Net Payroll?
A: Payroll costs are calculated on a Gross basis — not including subtractions or additions based on federal taxes and income taxes. See here for a longer description of that answer.
Q: When does the 8 Week Period of a PPP Loan officially begin? When I apply, when I get the loan? Some other date?
The 8 week period begins when the Lender makes the first disbursement of the loan to you (the borrower).
Q: What if the PPP Loan programs run out of money – should I apply anyway?
A: We cannot predict when or if the PPP would run out of money. But what we do know is that the program is limited to 8 weeks (for now). So, it’s a but uncertain either way, but I would think the clearer line that has been defined is the 8 weeks limit.
Q: I have more questions about PPP Loans that aren’t answered here – where can I go?
A: The Feds have put out a PPP Loan Fact Sheet and a FAQ document on the PPP Loan that may be helpful.
