The team at Acara Partners has been working actively to provide our subscribers with up to date information regarding PPP loans in the aesthetic medical community.
Early data from Aesthetic Business Institute’s industry flash poll shows 93% of practices applied for the PPP. Of the 93% who applied, almost 49% have already received funding (as of May 4th, 2020).
Now that funding is beginning to reach many practices’ bank accounts, we want to ensure that our followers put the right measures in place to optimize their potential for full (or close to full) loan forgiveness.
Our team has worked with Acara’s legal counsel, Brenner, Saltzman & Wallman LLP (BSW) to provide detailed and accurate information regarding the PPP. The below information was received from BSW and has been paraphrased by Acara Partners to ensure its relevance to the aesthetic medical community.
For many, loan forgiveness is the most critical element of a PPP loan. Invest your time and some money now in order to be favorably positioned to obtain the maximum loan forgiveness based on your circumstances and the needs of your business. Best practices to establish forgiveness are evolving, but should include the following:
1. Create a separate account for PPP loan proceeds.
2. Spend the time to develop a system to track and document how you plan to spend, and how you have spent, your PPP loan.
3. Understand which of your operating costs are expected to be forgivable under a PPP loan.
4. Ask your PPP lender what documentation they will require you to submit to support your calculation of loan forgiveness.
5. As the rules and guidance can be complex and are changing frequently, either spend the time to develop some expertise on PPP loan forgiveness, or engage a lawyer, or accountant to assist you.
Practices across different lenders continue to vary. As a result, there is still some uncertainty surrounding the details of how loan forgiveness will be implemented. It is very important that you understand the views and practices of your specific lender.
BSW is in the process of evaluating this new development and, as has been the case since the CARES Act was passed, consulting with other practitioners and lenders in an effort to provide Acara with the best advice as to how we can interpret and apply this new legislation.
Disclaimer: Information regarding federal aid and the PPP is rapidly changing. We suggest you always reference Treasury.gov for the latest information specific to the CARES act.
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