AMS is committed to helping you keep your practice open during COVID-19. The information below has been gathered as a list of financial resources and information that can help you during this time.
Small Business Loans for Clinics and Practices
Small businesses in Arkansas – including health care clinics and practices – can now apply for long-term, low-interest working capital loans to meet their financial obligations during the time of a disaster.
To qualify, businesses must have:
- An acceptable credit history,
- The ability to repay the loan, and
- Collateral for loans over $25,000. Note: SBA will not decline a loan for lack of collateral but will require the borrower to pledge collateral (e.g. real estate) that is available.
Apply for assistance on the SBA’s website and submit the following documentation:
- Business Loan Application (SBA Form 5) completed and signed by business applicant.
- IRS Form 4506-T completed and signed by the applicant business; each principal owning 20% or more of the applicant business; each general partner or managing member; and any owner who has more than a 50% ownership in an affiliate business. (Affiliates include business parent, subsidiaries, and/or businesses with common ownership or management).
- Complete copies, including all schedules, of the most recent federal income tax returns for the applicant business, or an explanation if not available.
- Personal Financial Statement (SBA Form 413) completed, signed and dated by the applicant (if a sole proprietorship), each principal owning 20% or more of the applicant business, and each general partner or managing member.
- Schedule of Liabilities listing all fixed debts (SBA Form 2202) may be used).
SBA says additional information may be necessary to process your application. Approval decisions and disbursement of loan funds will depend on SBA’s receipt of your submitted documentation.
The American Medical Association’s Advocacy staff have provided a summary of the highlights of the CARES Act that was signed into law last week. View the entire summary here. We will share more as it becomes available.
Employee Retention Credit
According to the CARES Act, businesses are eligible for an employee retention tax credit if:
1. Your business operations were fully or partially suspended due to a COVID-19 shut-down order; OR
2. Gross receipts declined by more than 50% compared to the same quarter in the prior year.
Eligible businesses can get a refundable 50% tax credit on wages up to $10,000 per employee. The credit can be obtained on wages paid or incurred from March 13, 2020, through December 31, 2020. Each practice would need to consult their tax attorney/accountant.