PPP Update and Status of Dentists Recovery

As many of you may know, shortly after our last global email, the Senate did in fact pass the new Paychex Protection Program Flexibility Act this past Friday. The president immediately signed it into law. All the provisions of the bill we outlined in our last global email, passed. The bottom-line of this new bill is that you have 24 weeks to use the PPP funds toward eligible costs. There are other provisions that ease the forgiveness requirements, but this is the most important. Considering most dental practices are now operating again, or very close to it, you have plenty of time. This is a great sigh of relief. Your PracticeCFO advisor will be making changes to your payroll (and family payroll) accordingly. Please note that it’s not entirely clear when we’ll need to apply for forgiveness. We suspect it will be after the 24 week period however.
 
An interesting NY Times article came out today titled, “How’s the Economy Doing? Watch the Dentists.” A few relevant extracts:
 
1.“The dental industry has weathered an exaggerated version of the pandemic’s economic impact, experiencing both a steeper decline and a faster recovery than other sectors.”
 
2.“The industry accounted for a staggering 35 percent of all health care jobs lost in those months, even though its workers make up just 6 percent of the industry”
3.“How long it takes those jobs to come back entirely will be a crucial indicator of whether Americans feel safe returning to normal activities, and if they have the economic means to do so."
 
4.“Regular surveys, sent out to 12,000 dental practices every two weeks, showed a relatively fast recovery.

5.“New federal data released last week tells a similar story. The dental industry gained a quarter-million jobs in May, accounting for a full 10 percent of the net jobs added across the American economy.”
 
6.“Federal stimulus programs may have played a key role in bringing dentists back to work. An estimated 37 percent of dental offices received funding through the Paycheck Protection Program, meant to help small businesses keep workers on payroll. Dentist practices that participated in the program were more likely to remain open than those that didn’t.” (Note: 100% of PracticeCFO clients requesting we file for their PPP received it. Virtually 100% of our clients received PPP)
 
7.“Even after last month’s job gains, the dental industry still has 289,000 fewer workers than it did before the pandemic. That suggests … that the industry — and the rest of the American economy — is far from recovered."
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