Paycheck Protection Program Info (Fixed Link)

Since the link to SBA-approved 7(a) lenders in the story below goes to an Excel file, some members have had difficulty opening it. We have turned it into a pdf in the hopes of eliminating this problem. If you still cannot access the list, try downloading it from the MAC website's "Information for Employers and Employees" section of the coronavirus page. The original story is below.

Please note: This list may not be all-inclusive, and we recommend you contact your financial institution and ask if they will be offering these loans. Chiropractic Federal Credit Union IS NOT an SBA-approved 7(a) lender. However, they do have other lending options available.

CARES Act Includes Forgivable Loans for Small Businesses
"Paycheck Protection Program" Loans up to 250% of Monthly Payroll Costs, Up to $10 Million

START THE PROCESS AS SOON AS POSSIBLE! Contact an SBA 7(a) Approved Lender (See Below) to See If They Will Offer These Loans and What Documentation You Will Need to Apply!

Today, the U.S. House of Representatives passed the CARES Act, legislation passed by the Senate earlier this week that includes approximately $350 billion for SBA guarantees of forgivable loans for small and medium sized businesses. The "Paycheck Protection Program" (PPP) loans up to 250% of monthly payroll costs, up to a possible $10 million, and may be forgiven if the business maintains its payroll through June 30, 2020. The program is designed to keep people employed and off the unemployment rolls.

President Trump is expected to sign the bill later today.

Eligible businesses would include those with 500 or fewer employees, self-employed individuals, and "gig economy" workers. There is no minimum number of employees needed for a PPP loan.

No collateral or personal guarantee is required to obtain one of these loans, which can be used for:

Payroll costs (salary, wages, and payment of cash tips up to an annual pay rate of $100,000 for an employee)
Costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums
Employee salaries, commissions, or similar compensations
Payments of interest on any mortgage obligation (which shall not include any prepayment of or payment of principal on a mortgage obligation) incurred prior to February 15, 2020
Rent on a lease agreement (in force before February 15, 2020)
Utilities (for service that began prior to February 15, 2020)
Interest on any other debt obligations that were incurred before the covered period

Applicants will be required to make a "good faith certification" that:

The uncertainty of current economic conditions makes necessary the loan request to support the ongoing operations of the eligible recipient
Funds will be used to retain workers and maintain payroll or make mortgage payments, lease payments, and utility payments
They are not receiving duplicative funds from another SBA program (excluding an Economic Injury Disaster Loan, to the extent that the disaster loan was used for a purpose other than those permitted for PPP Loans)

PPP loans will be made by lenders currently approved as 7(a) lenders (many banks and other direct lenders) with no additional SBA approval required. There are currently more than 800 existing SBA-certified lenders, including banks, credit unions, and other financial institutions. PPP lenders are only required to consider if the applicant was in business on February 15, 2020, and either had employees or paid independent contractors. Applicants will also not need to show that credit is available elsewhere or demonstrate an ability to repay the loan.

Loan Forgiveness
PPP loans are eligible for loan forgiveness equal to the amount spent in the 8-week period after the origination of the loan on approved costs (see above). The forgivable amount is reduced proportionately by any reduction in employees during the covered period (compared to certain prior periods). An amount forgiven under the CARES Act will not be taxable income. Amounts not forgiven after one year are carried forward as an ongoing loan, subject to a maximum rate of 4% interest and mature no later than 10 years after determination of the amount not forgiven.

Financial Institutions
Banks and other direct lenders are incentivized to make PPP loans under the CARES Act through SBA guarantees of the loans up to 100% for the remainder of 2020, waiving certain fees, limiting lender liability, and certain processing fees.

Other Benefits of the PPP Loan

Borrowers who re-hire workers laid off during the pandemic will not be penalized for having a reduced payroll at the beginning of the loan period.
Payments can be completely deferred for at least six months, but less than one year.
If the economy is still in trouble after eight weeks, this program can be extended and additional funds requested.

Approved 7(a) Lenders
For a list of Michigan SBA-approved 7(a) lenders (as of February 29, 2020) by county, click here.

Please note: Chiropractic Federal Credit Union IS NOT an SBA-approved 7(a) lender. However, they do have other lending options available.

Disclaimer: The Michigan Association of Chiropractors is a professional association advocating for the rights of chiropractors and their patients across the state of Michigan. We are NOT a state agency or regulatory body. We are merely informing our membership regarding what they are allowed to do during this difficult and confusing time.

The information we provide during this pandemic is derived in conjunction with our governmental relations and legal experts, developed after examination of all official releases of information from the State of Michigan and in consultation with said experts and representatives from state government. Please refer to our emails and website for the latest information, free from speculation and the rumors currently circulating in the wake of official state actions.

Rest assured that we will continue to advocate for the profession at the highest levels, with the health and well-being of you and your patients, as well as the overall stability of the health care system, foremost in our efforts.