CARES Act, Paycheck Protection Program and EIDL Information

CARES Act, Paycheck Protection Program and EIDL Information

April 22, 2020: Funding for the Paycheck Protection Program has been restored. See below for terms and instructions.


April 17, 2020: There is no more funding for the EIDL or Paycheck Protection Program (PPP) at this time. The ADA has been strongly urging Congressional leaders to increase funding for these two programs. We will update this page as more information becomes available.


The recently passed $2 trillion COVID-19 response package includes funding for education, individuals, big corporations, small businesses, public health, and state and local governments. Of particular interest to struggling dental practices are the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL). Both funding mechanisms hope to ease the burden on small businesses, especially in the areas of payroll management and expenses. Federal and Small Business Administration guidance on these programs has been released daily and can seem overwhelming, but these two initiatives represent a significant effort by the federal government to ease the burden on everyday business owners.


Payroll Protection Program

Click here for the PPP Forgiveness Application


  • 0.50% fixed interest rate
  • Two-year term
  • No fees for borrowers
  • No collateral or personal guarantees
  • No prepayment penalty
  • Amount borrowed can be for up to two months of your average monthly payroll costs from the last year plus an additional 25 percent of that amount, subject to a $10 million cap.



  • Current economic uncertainty makes the loan necessary to support operations
  • The applicant will provide documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments and covered utilities for the eight weeks after getting the loan.
  •  The applicant will use loan proceeds to retain workers and maintain payroll or to make qualifying payments.
    -Qualifying payments include: payroll costs (with some exclusions), mortgage interest, rent payments and utility payments.
    -Payroll costs include salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);
    -Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefits.
    -State and local taxes assessed on compensation.
    -For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.
    -Important note: Payroll costs will be capped at $100,000 annualized for each employee.



The loan will be fully forgiven if the funds are used for appropriate costs (see above) but the forgiveness amount could be reduced as a result of:

  • Any reduction in the average number of full-time equivalent employees during the eight-week period; and
  • Any reduction in compensation of any employee of more than 25 percent compared to compensation in the most recent full quarter prior to the eight-week period.
  • However, you have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.

To request loan forgiveness you can submit a request to the lender that is servicing the loan. The request must include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations. You must certify that the documents are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments. The lender must make a decision on the forgiveness within 60 days.

You can apply for the PPP through any existing SBA lender or through any federally insured depository institution, federally insured credit union, and or any Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. Visit for a full list of SBA lenders. In addition, you can also view a sample application.


Additional Resources

Small Business Guide to PPP

A Few Cautionary Notes on the COVID-19 Loans

U.S. Department of the Treasury Borrower Fact Sheet

More About PPP

SBA Loan Application

PPP Loan Application Delays

18 FAQs about PPP

ADA SBA Loans Resource Page


Economic Injury Disaster Loans (EIDL)

While EIDLs are nothing new, this is the first time in history that a pandemic viral event has been classified as a national “disaster” and thus triggered the availability of these funds. As a result of the natural declaration, businesses in every state and territory are now eligible to apply for EIDLs, which can hopefully help small businesses recover from the economic losses sustained as a result of the pandemic.
Broader than the PPP above, funding through EIDLs can be issued quickly and cover a larger variety of qualifying expenses. However, please note: If you or your practice has chosen to apply for the PPP to cover payroll and other expenses, you may not apply for an EIDL to cover it as well. No double-dipping is allowed.

Terms and Requirements

  • Applicant must have been in business on January 31, 2020. (No new businesses or last-minute startups)
  • Only sole proprietors, independent contractors and employee stock ownership plans with fewer than 500 employees are eligible to apply.
  • Loans will be based on a combination of self-certification and basic credit score.
  • SBA will advance up to $10,000 of the proceeds of an EIDL to an applicant on an expedited basis, within three days after the SBA receives an application. If the SBA ultimately rejects the application, the applicant may retain this $10,000 advance without needing to repay it.
  • Loan requests greater than $200,000 must come with a personal guarantee.
  • Loan requests less than $200,000 do not require a personal guarantee but will require real estate as collateral, and will take a general security interest in business property.
  • Update on April 16, 2020: The EIDL Program will now disburse grants at $1,000 per employee with a maximum of $10,000. This was recently amended and people are no longer eligible for a straight $10,000 grant. This decision was made to help with funding overall.

Click here to apply for an Economic Injury Disaster Loan. Note that if you applied before the disaster declaration was made, you may have been rejected because SBA Disaster Loan Assistance was unavailable for Coronavirus related economic impact at the time. (U.S. Dept of Treasury)


Additional Resources

ADA Resources on Small Business Loans

SBA Disaster Assistance Site

Forbes: Getting Cash For Your Small Business

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