Keep Your Acupuncture Practice Afloat During Coronavirus
Has the coronavirus affected your acupuncture practice?
Unless you’re living in a cave, the pandemic has likely affected your business in one shape or form.
Even if you’re one of the lucky ones in a state with low cases and still open for business, you’ve likely seen lower patient traffic.
It’s said that most businesses have one to three months of cash in the bank, which is and would be disastrous in a situation where we are locked down for extended periods of time.
Even if the lockdowns were to end quickly, it’s unclear, how fast the economy will bounce back.
If you’re one of the smart ones who planned ahead with a rainy day fund to get you through a pandemic, hats off to you. You can skip the rest of this post.
If you’re wondering, how you might make it through these bumpy times, read on.
Before we start, I just want to say, I’m not a financial advisor and all of this information is relatively new and subject to change. I’m just here to amplify the information as I know it at the time of writing. And, you’ll want to seek financial advice for what’s best for your business.
The CARES Act
Recently, on March 27, 2020, the government passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The CARES Act is a $2 trillion stimulus package to assist small businesses affected by the coronavirus pandemic.
The CARES Act provides two resources for small businesses, the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL).
The Paycheck Protection Program (PPP)
The Paycheck Protection Program (PPP) is a Small Business Administration (SBA) loan designed to incentivize small business to keep their workers on the payroll.
The SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
The Economic Injury Disaster Emergency Advance & Loan (EIDL)
The Economic Injury Disaster Loan (EIDL) contains two parts, a grant part and a loan part.
The EIDL Emergency Advance is a grant to provide up to $10,000 to businesses experiencing temporary difficulties. The advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. The loan advance will not have to be repaid.
The loan part of the EIDLs are lower interest loans of up to $2 million, with possible principal and interest deferment at the SBA’s discretion, that are available to pay for expenses that could have been met had the disaster not occurred, including payroll and other operating expenses.
Paycheck Protection Program (PPP) vs Economic Injury Disaster Loan (EIDL)
The following infographic gives a summary of the differences of the two programs.
You’ll want to check with the SBA for the fine print and details.
When to apply
Apply now! The money is distributed on a first come first serve basis.
Conclusion
These times are extraordinary.
Both the PPP and EIDL are great opportunities for acupuncture practices to get some economic relief from the coronavirus.
For those who need money immediately, the EIDL Advance grant looks like a great way to get a quick cash injection to pay your bills.
If you are a practice with employees on a payroll, the PPP might be a good option to keep your employees.
If you need more assistance than the EIDL Advance grant, you’ll want to look into both PPP and EIDL loan programs.
References
Be Safe. Be Well.
Minto
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