SBA Disaster Loans for Mental Health Practices
These are unusual times. Arguably, there has been no greater time in history when mental health care has been more important than it is today, yet some practices are seeing a decline – or in some cases a complete halt – of patient flow. Between soaring unemployment rates with health insurance uncertainties and the technical leap to telehealth, practices are working harder than ever to manage financially.
On April 3rd, through the Coronovirus Aid, Relief, and Economic Security (CARES) Act, new funding was made available to help small businesses and self-employed individuals get through tough financial times resulting from COVID-19.
What does that mean for you as a private practice owner? What does the Paycheck Protection Program (PPP) cover and how is this different from an Economic Injury Disaster Loan (EIDL)? Are you eligible to apply for either? Should you apply for both? What does the application process entail? Where do you apply?
We’ve partnered with Howie Slomka, an independent SBA loan consultant from Blue River Capital, LLC*, to give you information about your options and help you navigate the application process. In this webinar, we’ll focus on the COVID disaster loans that are available, walk through the details of those loans, how to apply, and other important information mental health professionals need to consider for their practices.
*Valant is in no way affiliated with Blue River Capital, LLC, nor is there any financial arrangement with Howie Slomka or his firm.
Update: April 20, 2020
We remain in fiscally uncertain times with the COVID-19 epidemic. According to this new information, the initial $350 billion dollar Paycheck Protection Program lifeline issued by the SBA ran out of funding on April 16th, 2020. Congress is reportedly working on another bill to make additional funds available.
For anyone who has embarked on applying for the Paycheck Protection Program (PPP) loan, you know how both the loan application and the process has shifted considerably in a very short time – creating confusion about how to secure funds for your business. Many of Valant’s more than 2,000 customers have expressed confusion about it and a rare few have had some success. While it’s impossible to guarantee success, we want to share what we’ve learned from the customers that have been successful in securing funding already:
- Confirm eligibility. Most Mental Health Practices under 500 employees are eligible to receive funding. Check here to make sure this is true for you.
- Prepare your application now. There is pent-up demand from small businesses not securing funds from the initial round. Don’t wait for Congress to approve the second bill. Submitting your application as soon as you are able will help you get to the front of the line.
- Proactive communication with your lender. Reach out to ensure that all your information is still correct and accurate. Be proactive. Don’t wait for them to circle back. Stay top of mind by asking for status updates on your application. It’s ok to reach out several times throughout the day.
We hope these tips increase your chance of success.
Update: April 22, 2020
On 4/21/2020 the Senate approved a $484 billion COVID-19 relief package which included an additional $320B for the PPP program and $60B for the EIDL program.
Update: April 24, 2020
On 4/23, the House passed the $484B coronavirus relief package for small businesses. The final amount added to support the Paycheck Protection Program was $310 Billion. If you have not applied and plan to, we recommend doing so as quickly as possible. Here is additional information provided by the Department of Treasury.
Update: May 18, 2020
The SBA released the loan forgiveness application on May 15th. In order to best understand how you will track and submit data for your application, it may be helpful to read the forgiveness application in its entirety. You can access the application here.
Also, if your mental healthcare company received a PPP loan in the amount of less than $2M, it may be helpful to read the question and answer document released by the treasury department regarding “How will SBA review borrowers’ required good-faith certification concerning the necessity of their loan request?”.
Bookmark this link to find the latest information on the COVID-19 PPP and EIDL programs. We will continue to provide updates as the situation evolves.