March 30, 2020 | Issue 9
President Signs CARES Act into Law
On Friday, March 27, President Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law. That same day, the ADA conducted the webinar What's in the CARES Act and How it Can Immediately Impact My Dental Practice. That webinar is now available on-demand for those who were unable to participate or would like to listen again.
SBA Loan Options: Economic Injury Disaster Loans and Paycheck Protection Loans
The ADA and the Academy of Dental CPAs have developed a fact sheet  to assist dental offices in understanding the funding options available through the CARES Act. Please monitor the ADA communications for additional information, as the below information is provided for informational purposes only and does not constitute financial or legal advice. The IDA strongly encourages you to contact a licensed attorney, Dental CPA, or tax advisor with expertise in this area for more information and assistance in completing any loan paperwork.

There are multiple Small Business Administration (SBA) loan options available for employers:

Economic Injury Disaster Loan (EIDL) - Section 7(b) of SBA
  
  • We encourage you to apply for this ASAP.
  • It is ONLY available through the SBA website. We encourage you to print a paper application using this link and upload the application to avoid website traffic issues.
  • If you apply for this loan, you can request an emergency grant of up to $10,000 which the SBA must provide within three business days of grant request. This grant will not have to be repaid even if you are not approved for the loan. If you apply for the loan before the grant is available, you will need to go back and request the grant but will not have to reapply. At this time, there is no guidance on how this is done, but we expect more information will be released.
  • Terms: 3.75% interest, up to 30-year repayment, 12 months no payments.
  • Credit score of applicant is the primary factor in approval. 
  • $10 billion is set aside for the grant program, and the grants are to be given out First Come First Served. 
  • The SBA will determine the amount of an EIDL Loan and the loan is available to pay for expenses that could have been met had the disaster not occurred, including payroll and other operating expenses.
  • For any loan made under this program, no personal guarantee will be required on loans up to $200,000. 
  • It is important that this loan is applied for BEFORE the section 7(a) loan discussed below if you wish to participate in both programs. 
  • If you receive EIDL money and you intend to also apply for the Payroll Protection money of 7(a), please consult with your tax advisor to develop an efficient plan for the use of the loan proceeds.

Paycheck Protection Loan - Section 7(a) of SBA

  • This loan is not currently available as of 3/28/20, but will be available soon.
  • This loan will be provided by SBA approved banks. We encourage you to contact your business banker for additional information.
  • Terms: 4% interest, up to 10-year repayment, 6 - 12 months no payments.
  • Loan proceeds are limited to 2.5x average monthly payroll costs (wages, health insurance, PTO, retirement benefits and state or local payroll taxes assessed on compensation of employees) not to include federal payroll taxes. This does not include 1099 subcontractors or Employee/Owner Compensation over $100,000.
  • Self-employed (1099) individuals are eligible for their own 7(a) loan and loan forgiveness. 
  • There will be an amount eligible for forgiveness - this amount must be calculated and cannot exceed the sum of the payroll costs, mortgage interest, rent and certain utility payments in the 8-week period following funding. Loan Forgiveness is contingent on having 75% of the number of employees on payroll Feb 15, 2020 by June 30, 2020.
  • To seek forgiveness, documentation will be provided to the lender that includes the qualified expenses during the 8-week period subsequent to loan closing.
  • Our current understanding is the loan proceeds must be spent by June 30, 2020 even if the 8 weeks extends beyond that date. 
  • There is potential for refinancing your EIDL loan into the section 7(a) loan to also make it eligible for forgiveness.  Even if you are unable to refinance the EIDL into this loan, you are not prohibited from obtaining both loans.
 
For additional information on how the CARES Act impacts your practice, please review the Small Business Owners Guide to the CARES Act , developed by the Senate Small Business Committee, and the ADA’s CARES Act Small Business Loans document.
ADA COVID-19 Assistance Resources
Three new informational documents have been added to the ADA COVID-19 Resources for Dentists page on their website.

Iowa Workforce Development Updated Leave Policy
This morning, the Iowa Workforce Development issued a statement regarding updates to the leave policy for those eligible for unemployment insurance benefits due to COVID-19 layoffs.

"Effective immediately, employees who are or will be laid off, or are unable to work for reasons related to COVID-19, will no longer be required to use all paid leave prior to being eligible for unemployment insurance benefits.  This change is not retroactive and claims will not be backdated prior to the week of March 29, 2020, for new or existing claims by individuals who work for employers ."

This change is a result of the CARES Act that was signed into law by President Trump on Friday. The CARES Act also provides benefits for those who were previously ineligible for unemployment insurance benefits in the past, self-employed and independent contractors and others. The Iowa Workforce Development will provide more information regarding these benefits as they are available from the U.S. Department of Labor on their website .
CDC Releases Dentistry Infection Control Guidance
The CDC has released infection control guidance for the dental setting on their website, including information regarding screening patients prior to emergency dental treatment who have symptoms of COVID-19 or who completed home isolation.

The CDC recommends using these guidelines in conjunction with the Interim Infection Prevention and Control Recommendations. These guidelines do not replace the general infection prevention and control recommendations for COVID-19.
Donate PPE
The number of dentists who have donated the needed personal protective equipment (PPE) to county health departments, hospitals, care facilities, and fire/EMS departments continues to grow. If you have PPE that you are able and willing to donate please complete the donation form.

If you donated directly to the facilities, please contact IDA with a list of the items donated and the name of the facility donated to. IDA is tracking the amount of PPE donated by Iowa dentists. Thank you to everyone who has generously donated PPE to assist with the national shortage!

Follow us on Facebook to view pictures that dentists have submitted delivering donations and be sure to tag us in your donation posts. Today's picture is from Dr. Bob Ronconi from Ronconi Dental Clinic in Fort Dodge who donated these supplies to the Webster County Public Health Department.

Thank you to the dentists who have donated or volunteered to donate PPE:

  • Dr. Scott Hansen, Charles City
  • Dr. Larry Kalkwarf, Rockwell City
  • Dr. Ryan Weaver, Grundy Center
Latest Information from Governor Kim Reynolds
Governor Reynolds is currently conducting daily press conferences at 2:30 PM. Those press conferences may be viewed live on Facebook.

The governor issues daily press releases regarding the status of COVID-19's effect on Iowans. Click here to access the most recent press release.
Register to Serve in the Iowa Statewide Emergency Registry of Volunteers
Interested individuals are encouraged to register as a willing and able volunteer through the Iowa Statewide Emergency Registry of Volunteers (i-SERV) – the Iowa Department of Public Health's secure online registry for individuals wishing to volunteer in the event of a large-scale disaster or public health emergency. Volunteers maintain the option to accept or decline any opportunity. Due to the Governor’s Public Health Disaster Emergency Declaration, individuals who volunteer to respond to the COVID-19 pandemic are granted liability immunity for their service. Volunteering for this disaster response will not impact unemployment benefits for those who are receiving them as a result of their clinic temporarily shutting down.