September 16, 2020

Should You Wait to Apply for PPP Loan Forgiveness?

I hope our latest blog post finds you, your family and your staff all safe and healthy! This year certainly has been a whirlwind. At this point, we hope that you all have been able to take advantage of the various pandemic-related federal relief programs introduced this year. For our small business owners, namely the Paycheck Protection Program (PPP) loan.

Find it on

The extension to use PPP loan funds over a 24-week period certainly helped dentists make the most of them. With different re-opening dates around the country, the initial eight-week period was going to make it tough for some practice owners to utilize their entire PPP loan. Perhaps we can assume that by now the majority of dentists have used up their PPP funds and are wondering about the program’s next step – applying for loan forgiveness.

We have heard that some banks are still working on finalizing their loan application, as well as their loan forgiveness process. While you technically have until Fall 2021 to apply for forgiveness, we do encourage you to think about applying before then. The bank has 60 days to apply to the SBA for forgiveness and the SBA has 90 days to agree to the forgiveness amount. So, this isn’t a short process.

Based on updates to the program over the past few weeks, we believe that many dentists should be able to utilize the PPP Loan Forgiveness Application Form 3508EZ. This is a two-page application form that has been revised and streamlined over the past few months. One of the recent updates to the application was adding a new option for small businesses. This option allows you to check a box that your business activity was interrupted due to compliance with an order issued by the Secretary of Human and Health Services, the Director of the Centers for Disease Control and Prevention or the Occupational Safety and Health Administration. This route does require confirming that you haven’t reduced annual salaries or hourly wages of any employee by more than 25%, but it allows you to bypass having to complete the FTE calculations. Our understanding is that a lot of dentists should be able to check the box for this new option, as they were ordered to shut down for a period of time.

Think about applying for PPP loan forgiveness around the end of September or early October. Keep your accountant or tax professional in the loop, because any expense paid with forgivable loan proceeds can not be deducted on your tax return.

In our next post, my colleague, Brian Roemke, will discuss his thoughts on how best to spend your Economic Injury Disaster Loan (EIDL) proceeds. 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.

This commentary originally appeared September 9 on

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. IRN-20-1002

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About the Author

Katie Collins

Practice Integration Advisor

As a practice integration advisor, Katie works directly with clients to develop a financial plan personalized for their specific situation and goals. She quarterbacks the entire financial picture, often for clients who have never put all the pieces together with one advisor. Katie joined Buckingham Strategic Wealth through the 2014 merger with Indiana-based Hufford Advisors, where she spent more than 10 years working in various financial planning roles, most recently as a senior planning consultant.