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Key Takeaways and Resources from "How to Apply for COVID-19 Financial Resources" Webinar
On April 13, 2020, ASRS and Arnold & Porter hosted a webinar “How to Apply for COVID-19 Financial Resources,” that featured key details on financial relief available to retina specialists during the COVID-19 pandemic, and strategies for selecting the best options for your practice.
ASRS highlights key takeaways:
- For Provider Relief Funds distributed Friday, April 10, 2020 (not specifically addressed in the webinar), ASRS recommends that practices abstain from attesting to receipt of funds until additional guidance from the U.S. Department of Health and Human Services (HHS) is available ASRS will provide further information on the uses of funds, as well as terms and conditions, as it becomes available.
- When receiving any type of federal relief funds, ASRS recommends depositing those funds into separate bank account to facilitate tracking and accounting.
- For practices seeking additional relief, the Payment Protection Program (PPP) is likely to be the most attractive option. The PPP offers several options for loan forgiveness and carries the lowest interest rate (1%) for amounts not forgiven. Secondarily, practices should consider the Emergency Injury Disaster Loan (EIDL) program with an interest rate of 3.75% that can be issued in conjunction with PPP loans.
- PPP borrowers are not eligible for Employee Retention and Payroll Tax credit programs.
- For loan forgiveness, at least 75% of a PPP loan must be spent on payroll costs. Payroll costs include salary and benefits, such as healthcare. See cost calculator to estimate loan amounts.
- The Medicare Accelerated and Advanced Payment program should be considered as a last resort given its 10.25% interest rate and short recoupment period that may lead to cash flow issues. This option may become more attractive as ASRS and the medical community are advocating for an extended repayment period and reduced interest rate.
Click here to access a recording of the webinar, as well as an informational fact sheet, program deck from the event and other resources.
Information related to pandemic relief is updating daily, this information is current as of April 23, 2020. ASRS will continue to provide additional information as it becomes available.
If you have questions, please contact Allison Madson, director of health policy.
(Published 4.14.20/Updated 4.23.20)