Archives for March 2020

The Dental Accounting Association, and it’s Dental CPA member firms, have launched a Small Business Loan Assistance service to support the following types of dental practices:

• General Dentistry
• Pediatric Dentistry
• Orthodontists
• Oral Surgeons
• Endodontists
• Periodontists
• Specialty Dental Practices

This emergency loan assistance program is designed to provide dental practices with sound financial guidance in this emergency situation navigating federal, state and city specific programs, grants as well as dental industry specific options.

To learn more, visit the “request a dental accountant” page and complete the form.  We will then put you in touch with a CPA nearby.

As a result of the current pandemic, most dental specific loan providers have quickly responded.  Below are some details that we have recently received from Lendeavor on how they have responded.

Current clients of Lendeavor were all contacted last week directly with the opportunity to accept deferred payments to their current loans to ease the burden to their cash-flow as they navigate this event. It appears they are the only national lender to take the proactive approach of reaching out to all clients opposed to taking the reactive approach of waiting for them to contact us.

Current Approved Loans with Lendeavor

Business as usual.  We are open for business with the closing team, inside sales, outside sales and (most importantly) underwriting at full capacity with no interruption of service. There have been no material changes to our underwriting policies.

Future Loans

A major deal was struck by the White house and Senate leaders on March 25 for a $2 trillion package that will provide relief to the economy in the midst of the coronavirus pandemic. It is the biggest relief package in American history.

Senator Mitch McConnell called it as “a wartime level of investment into our nation” as the United States continues to see a rise in the number of coronavirus cases.

The package will provide much needed financial support to businesses forced to shut down and relief to American families and hospitals turned upside-down from the fast spreading disease and ensuing economic crisis.

Here are some of the key factors that were being negotiated in the stimulus package:

• $250 billion set aside for direct payments to individuals and families
• $350 billion in small business loans
• $250 billion in unemployment insurance benefits
• $500 billion in loans for distressed companies
• Individuals who earn $75,000 in adjusted gross income or less would get direct payments of $1,200 each
• Married couples earning up to $150,000 receiving $2,400 — and an additional $500 per each child
• Payment would scale down by income, phasing out entirely at $99,000 for singles and $198,000 for couples without children

Some other areas discussed by negotiators were providing four months of unemployment benefits, offered to self-employed workers as well. In addition, the bill would ensure the Small Business Administration could serve as a guarantor for loans of up to $10 billion for small businesses to make sure they can maintain their payrolls and pay off their debts.

The bill would provide $130 billion in funding to hospitals especially hard hit and $150 billion for state and local governments struggling due to response to battle coronavirus.