Finance32: Dental School’s Missing Curriculum
Finance32: Dental School’s Missing Curriculum
Great clinical skills simply are not enough for dentists to achieve financial success. Let Buckingham Strategic Wealth's Practice Integration Advisors share what else you need to know to realize your lifetime goals and obtain financial peace of mind.
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Navigating the Three PPP Loan Forgiveness Forms

Navigating the Three PPP Loan Forgiveness Forms

5/5/2021 10:00:00 AM   |   Comments: 0   |   Views: 59

Katie Collins, a Practice Integration Advisor with Buckingham Strategic Wealth, helps dentists order their financial lives and reach financial peace of mind so they can better focus on what truly brings them joy.

Many dentists are using springtime to clean up their books regarding any federal pandemic relief money they received in 2020. For a number of practice owners, that means starting to apply for loan forgiveness under the Paycheck Protection Program (PPP). Assuming that you used your PPP monies for eligible expenses (at least 60% toward eligible payroll expenses and 40% toward non-payroll costs) and your bank has opened its portal to accept forgiveness applications, then you’ll need to determine which application is right for you. You have three applications to choose from: Form 3508, Form 3508EZ or Form 3508S. Let’s explore each of these forms and which one may be right for you.

Any borrower can fill out Form 3508 (or your bank’s equivalent). If you search online for Form 3508, you’ll find that Version 8 from January 2021 appears to be the latest update. The application is 13 pages, some of which you will fill out and some of which is instructions for what information to provide. After filling out the application, you will most likely need to provide supporting documents to your lender. Examples may include payroll reports, Form 941s, invoices, lease agreements, documentation regarding number of employees, etc. Once you have everything together, you will then submit the package to your lender.

Before you jump into filling out Form 3508, we would encourage you to see if you are qualified to fill out either Form 3508EZ or Form 3508S.

Form 3508EZ is a much smaller application at only three pages. You will qualify to fill this out if you did not reduce employee wages by more than 25% and if you didn’t reduce staff or were unable to rehire or find similarly qualified employees, OR if you were unable to operate due to adherence to health guidelines. Because most dental offices were required by government order to shut down in 2020, most dentists should qualify for Form 3508EZ. You will still need to provide similar documentation as with other applications when seeking forgiveness, but the form itself is much shorter to fill out.

Form 3508S is the last option and is only available for those loans under $150,000. The application is six pages long and mostly made up of instructions on how to fill out just two of its pages.

While we hope this high-level background on the applications available to you is helpful as you begin applying for forgiveness, we would recommend that you talk with your lender about their process and work with them to get your application filled out and submitted. It may also be worth your while to talk with your accountant to ensure you take full advantage of PPP loan forgiveness as well as any employee retention credits that may be available to you.

In our next post, my colleague, Tom Bodin, will discuss his thoughts on financial lessons that small businesses learned from the pandemic. As always, if there are specific topics you’d like us to tackle, please send us an email!

Would you like us to speak to your study club? Our Practice Integration Wealth Management team is pleased to offer live, interactive presentations to your colleagues. We can tailor our presentations to fit your content and time requirements and deliver them via an online format. Along with a question-and-answer period, we offer all attendees the opportunity to meet with us individually should they wish to ask questions more specific to their own circumstances. We can also arrange to have your study club’s presentation earn ADA CERP credits for attendees. Contact me for more information.

Buckingham Strategic Wealth is an ADA CERP Recognized Provider. ADA CERP is a service of the American Dental Association to assist dental professionals in identifying quality providers of continuing dental education. ADA CERP does not approve or endorse individual courses or instructors, nor does it imply acceptance of credit hours by boards of dentistry. The information provided is for educational purposes only and should not be construed as specific tax advice. Individuals should speak with a qualified professional based on their unique circumstances. IRN-21-2127

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