HMA clients, as well as many other physician practices across the country, have or will soon be receiving potentially forgivable funds under the CARES Act Payment Protection Program (“PPP”). Once the money is received, recipients have 8 weeks to spend that money on certain expenses that will allow them to apply for forgiveness. SBA states that they will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll ($100,000/annum limit per employee), rent, mortgage interest, or utilities.
The Small Business Administration (SBA), in consultation with the Department of the Treasury, provides timely guidance to address borrower and lender questions. Click here to see the May 5, 2020 update of their FAQ document. HMA strongly recommends that physician practices ensure that they comply with the established guidelines (which continue to be updated regularly) and that they seek guidance from legal advisors if they have any questions or concerns.