This topic contains 6 replies, has 4 voices, and was last updated by 
Keith Puri, DC April 7, 2020 at 9:23 pm.
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Keith Puri, DC
I just received the PPP loan application from someone I went to UBCC with and wanted to pass it along. Below are the loan terms and conditions.
– Keith
Loan Terms & Conditions
Eligible businesses: All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries
· Maximum loan amount up to $10 million
· Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs)All loans under this program will have the following identical features:
o Interest rate of 0.5%
o Maturity of 2 years
o First payment deferred for six months
o 100% guarantee by SBA
o No collateral
o No personal guarantees
o No borrower or lender fees payable to SBAhttps://home.treasury.gov/news/press-releases/sm961
https://home.treasury.gov/cares
This link will take you to the PPP information sheet for borrowers.
Keith Puri, DC
A brief overview of the program
https://home.treasury.gov/system/files/136/PPP%20–%20Overview.pdfPPP Lender Information Fact Sheet
https://home.treasury.gov/system/files/136/PPP%20Lender%20Information%20Fact%20Sheet.pdfPPP Borrower Information Fact Sheet
https://home.treasury.gov/system/files/136/PPP–Fact-Sheet.pdf
Eric Lambert, DC
Thank you Keith for passing along all this information.
Brandon Cohen DC, CSCS
Thanks, Keith. I applied for the PPP earlier this week.
Keith Puri, DC
I just received this to fill out.
PPP Application Addendum
https://files.constantcontact.com/712350c1301/cf8da350-8715-4526-add8-016e66e90994.pdf
William Brady, DC
Thanks Keith. Please be thoughtful/careful with any loan program. Be sure to understand the details. My biggest concern with this program is the requirement that 75% of the business costs have to be for payroll. Unless you pay yourself through payroll, or have a multiple doctor staff, I would think it is very difficult to hit that large payroll threshold for loan forgiveness. Either way it is a very inexpensive loan, which is good. You do have to compare that with furloughing your employees and having them take unemployment. With the unemployment option you are not paying them to stay home, the government is.
If you don’t meet the 75% threshold for loan forgiveness, then you are borrowing money to pay your employees to stay home. You will have 2 years to pay that back.
I am not a loan expert. Please talk to your loan officer and see the documents for details. Just a perspective to discuss.
Keith Puri, DC
Thanks, Dr. Brady. I appreciate the feedback. All our employees (including myself and business partner) are paid through payroll in our office, so we are hopeful this program will help cover a good portion of our payroll expenses. We will certainly pay strict attention to the loan distribution. Like you mentioned, with the number of applications expected to be submitted, it’s anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
Because of this, our accountant recommended we also apply for the Economic Injury Disaster Loan and request a loan advancement of up to a $10,000. According to the SBA, this advancement will not have to be repaid even if you are subsequently denied for an EIDL loan. You can apply for both, but you can’t “double-dip” and get funds from both loan programs for the same purpose. So, if we are approved for this advancement we intend to use it mainly for non-payroll costs.
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