The ADA is supporting new legislation to give small businesses more flexibility with the Small Business Administration’s Paycheck Protection Program.
In April 30 letters to the House and Senate, ADA President Daniel J. Klemmedson, D.D.S., M.D., and Executive Director Kathleen T. O’Loughlin, D.M.D., thanked lawmakers for introducing HR 2582, the PPP Revenue Adjustment Calculation to Increase Capital Accessibility Long-term Act, and S 1200, the Fair PPP Accounting Act.
Both bills would adjust the eligibility calculation for second draw Paycheck Protection Program, or PPP, loans to 90 consecutive days, rather than a calendar quarter.
“The ADA recommended that dentists close their offices during the spring of 2020 for all but urgent and emergency procedures. These closures did not occur during a fixed calendar quarter, but rather during the months of March, April and May,” wrote Drs. Klemmedson and O’Loughlin, noting that the majority of dental practices are small businesses.
“After dental offices reopened, the Paycheck Protection Program has helped dentists to retain and rehire employees and continue to serve the oral health needs of their patients,” the letter said. “However, under current rules of the second draw PPP loans, these businesses cannot use the months of March, April, and May to reflect the 25% decline in revenue.”
The ADA is also supporting S 1232, the PPP Flexibility for Farmers, Ranchers and the Self-Employed Act, which would allow sole proprietorships to use gross rather than net income when applying for PPP loans. The legislation would also adjust the eligibility calculation to 90 consecutive days, rather than a calendar quarter.
“The majority of dental practices are small businesses, including many sole proprietorships,” wrote Drs. Klemmedson and O’Loughlin in an April 29 letter to the Senate.
With the PPP Flexibility for Farmers, Ranchers, and the Self-Employed Act, sole proprietors who had previously applied for PPP using net income would be able to recalculate and receive an increased benefit.
Follow all of the ADA’s advocacy efforts at ADA.org/Advocacy.