At HCA Healthcare, we view our independent physicians as an integral extension of our healthcare family. We know you are focused on the care and support of your patients, staff, and practice during this pandemic. We want to help.
This document provides guidance on how your physician practice, as a small business, can leverage the federal Paycheck Protection Program during this difficult time.
The CARES Act is a $2 trillion economic stimulus package that includes $350 billion in Small Business Administration (SBA) 7(a) and SBA Express loans designated to keep staff employed and provide emergent liquidity to keep businesses of less than 500 employees from failing.
The Paycheck Protection Program (PPP) includes the potential for partial or complete forgiveness of a loan, as long as employers maintain their payroll and satisfy other specific criteria. The program is retroactive to February 15, 2020, allowing companies to rehire staff who have already been laid off and pay them for the time they missed. Applications for PPP loans became available through SBA authorized lenders on April 3rd for small businesses and sole proprietorships and will be available as early as April 10th for independent contractors and the self-employed.
- Learn how PPP can help you - Review Treasury Department PPP application and PPP Fact Sheet
- Act quickly to avoid delays - Gather your information and contact your existing bank
- Compile the right information and apply - Understand legal and financial information required to apply
Engaging your bank: questions to ask
Due to the expected massive number of loan applicants to this program, we believe that it is highly important to contact your bank as soon as possible and determine if they are a participating lender. Below are questions to ask if they are participating.
- Who will help my business apply for a PPP loan? Will my existing relationship manager be the point person, or will it be another person or banking group here?
- Do you recommend any outside entities to assist in the application preparation process?
- What is your specific loan process to minimize the time needed to prepare and submit my loan application?
If your bank is not participating, visit this SBA site and enter your zipcode to find the list of participating lenders in your state.
HCA Healthcare is seeking to learn more from SBA lenders about what direct loan preparation and packaging assistance they can provide.
Information needed for application completion
Your lender can provide definitive guidance on what supporting documentation will be necessary. Based on the Treasury website application, key information is outlined below for a PPP loan with:
- 1.0% fixed interest rate
- No interest or principal payments for first 6 months
- 2-year term
- Forgiveness of up to 100% of the principal amount
To calculate eligible loan amount
- Payroll reports for 2019 and 2020 year-to-date for employees and officers that show:
- Gross wages
- Paid time off/paid vacation
- Pay for family, medical, or sick leave
- State and local taxes (form 940, 941 or 944)
- 1099s for independent contractors (if applicable)
- Completed 2019 tax return OR 2019 Profit and Loss Report and Balance Sheet
- Documentation (as applicable):
- Funds received in the form of an Economic Injury Disaster Loan (EIDL) from January 31, to April 3, 2020
- Payments for group health care benefits including premiums paid in 2019 to 2020 year-to-date
- Payment of any retirement benefits paid in 2019 and 2020 year-to-date
To verify forgiveness amount
- Quarterly IRS forms 940, 941 or 944 for the following dates:
- March 31, 2019 and June 30, 2019
- March 31, 2020 and June 30, 2020, when available
- Documentation in the form of canceled checks, payment receipts and bank statements showing payment of the following items from Feb. 15, 2020 to June 30, 2020:
- Mortgage interest
- Rent payments
Disclaimer: This information is as of April 6, 2020 and subject to revision and interpretation based on pending rules and regulations. In addition, this is only a summary of more detailed information and may not contain all the information that is important or relevant to you. This document is solely for your information, and no representation or warranty, expressed or implied is made. You should not place undue reliance on the accuracy, fairness or completeness of the information presented.