Dental professionals who received assistance through the first draw Paycheck Protection Program face a fast-approaching deadline if they are seeking loan forgiveness.
The period to apply could fall between this month and September. The deadline, however, depends on the timeframe for when dental offices obtained funding and put it to use.
Loan recipients are coming against an early July deadline if they received funding in April and opted for the eight-week cover period. Some dental professionals chose a 24-week period, which makes them eligible for a later deadline to apply for loan forgiveness.
The American Dental Association advises dental professionals to bring their questions to their lenders, especially on the timing for loan forgiveness applications and other related matters.
To qualify for full loan forgiveness, dental professionals must meet several criteria. Maintaining employee compensation levels, using funds for eligible expenses such as payroll cost and spending at least 60 percent of the PPP for payroll are three requirements.
Borrowers can apply for forgiveness any time through the maturity period of the loan, according to the Small Business Administration. If dental professionals decide to opt out of loan forgiveness, payment deferment will cease within 10 months, triggering loan repayment.
PPP, or the Paycheck Protection Program, was established by the Coronavirus Aid, Relief, and Economic Security Act last year to left up struggling businesses and their employees.
Information about forgiveness for loans under $150,000 can be found on Form 3508S; for loans above that amount, check out Form 3508.