How Chiropractors Can Receive Economic Relief During COVID-19
Chiropractic practices aren’t necessarily the first things that come to mind when you think of “small businesses.” But, while chiropractors are tasked with giving essential care to their patients during the COVID-19 pandemic, they’re also facing many of the same economic challenges that businesses around the world are.
It’s a reality that practice management consultant Dr. Mark Sanna, of Breakthrough Coaching, and certified professional compliance officer Kristi Hudson, of ChiroHealthUSA, know all too well. Here, Sanna and Hudson give helpful tips on how to navigate relief for chiropractic practices under the federal CARES Act as well as through previously existing loans under the U.S. Small Business Administration.
Paycheck Protection Program (PPP)
“We’re certainly helping chiropractors navigate their way through this rapidly changing paycheck protection program that has come through the Small Business Administration,” says Sanna. “We had all kinds of misinformation and there’s still misinformation out there. Holding their hands and making sure that they get the funds that they are eligible for has been a very important role for us.”
“The paycheck protection program is a great way for doctors to be able to bring staff back on when their practice resumes regular business. That’s super important. That’s a really important first step for many docs to take,” he says.
Small Business Administration (SBA) Loans
“They [chiropractic practices] qualify for the SBA (U.S. Small Business Administration) 7(a) and 7(b) loans,” says Hudson. “I know that the 7(a) funding went really really quickly. There’s a lot of talk within the federal government that there may be additional funding to help them. So we definitely encourage every chiropractor as a small business owner to go ahead and apply for those funds.”
“Those docs who have existing SBA loans in place received a benefit as well, and that is that the government is actually paying principal and interest for the next six months of those loans,” says Sanna. “You don’t have to apply for it. If you have an existing SBA loan, those next six months are being paid for by the government.”
Economic Disaster Injury Loan (EIDL)
“Then there’s also the EIDL, which is the Economic Injury Disaster Loan, and that’s also through the SBA,” says Sanna. “That provides doctors with up to $10,000 grant that they can use for other expenses outside of the paycheck protection program. That’s more of a traditional type of loan that might have a 14 to 30-year term and 3.75% interest. It may require some collateral as opposed to the PPP which doesn’t require collateralization. It’s more of a traditional loan.”
“I think a lot of times chiropractors are selflessly devoted to their patients and they don’t often think of themselves as businesses,” says Hudson. “Utilize resources from your state Small Business Administration. Reach out to your state [chiropractic] association. They are on calls with providers about how to help them during this really trying time in their practice.”
“There are also tax incentives for folks who don’t participate in the PPP or EIDL loans,” says Sanna. “So it’s a time to really understand what’s available to you and make sure that you’re supporting your practice and your practice teams with the monies that are being made available.”
Do you want to know if your practice is eligible for receiving economic relief during the COVID-19 crisis? Download our Payroll Protection Program Loans checklist to see if your business is eligible.
Are you interested in learning more?
To get more information on how to prepare your chiropractic practice for post-COVID-19, download this guide, Navigating Chiropractic Practice Management After COVID-19, to learn the best ways on how to ready your business.