May 5, 2020
What Dentists Need to Know About the U.S. CARES Act
With all that is going on, it’s easy to get lost in the sea of information being passed around. We’re here to break down what you need to know about the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) that the U.S. Senate passed to provide financial assistance to businesses, such as dental practices. Here’s how Congress is supporting dentists during these exceptional circumstances.
Senate Bill 3548, introduced by Sen. Mitch McConnell, R-Ky., was introduced on March 19. It is the third legislative package developed in response to the pandemic following the successful passage of an emergency funding bill and the Families First Coronavirus Response Act (now Public Law 116-127).
The CARES Act contains many provisions the American Dental Association has advocated for on behalf of dentistry that could be of significant benefit to dentists, dentist owners, dental students, and dental office employees. Regulatory guidance will be provided by the Department of Labor, Department of Treasury, Department of Health and Human Services, and the Internal Revenue Service.
There are a number of Small Business Administration (SBA) loans available to dentist owners, including the Economic Injury Disaster Loan that establishes an emergency grant to allow a dental practice to receive an advance on that loan of no more than $10,000, which the SBA must distribute within three days, used to pay for employee COVID-19-related sick leave, mortgage or rent, and other overhead expenses. Grants are awarded on a first-come, first-served basis until the $10 billion fund is exhausted, and applicants would not have to repay the $10,000 grant even if they are denied the loan. Other one-time options exist for business owners’ and students’ loans to be deferred or forgiven tax-free.
Contact the experts at Professional Transition Strategies to determine how you might benefit from provisions to the CARES Act, as well as other creative options that may exist to help you and your business weather the storm.