While the safety of patients and staff continues to take top priority for dentists, the coronavirus response legislation is rapid. An understanding of the CARES Act is crucial, and every area of the business can benefit from a sense of timeliness.

Paycheck Protection Program loans from the federal government made it possible for dentists and staff to return to their roles as oral health care providers earlier this year. Discussions that took place back in April may be difficult to recollect.

Cain Watters & Associates, L.L.C, a nationwide CPA and financial services firm, specializes in educating and guiding the dental community in financial principles. Here, they share insight for dentists to consider on PPP loan forgiveness, such as factoring in which expenses are applicable. 

Reminders for the PPP loan forgiveness process

A few reminders now might help dentists avoid unpleasant surprises later in the loan forgiveness application process. Here are a few to consider:

  • Payroll percentage matters. Sixty percent of every PPP loan must be designated to payroll.
  • EIDL grants offset loan forgiveness. Any dentist who received an EIDL grant, which offered $1,000 per employee, up to $10,000, will owe a minimal amount on their PPP loan.  

For instance: If a dentist received a $100,000 PPP loan and an $8,000 EIDL grant, even if they achieve 100 percent forgiveness, $8,000 will still be outstanding. 

  • Full Time Equivalent (FTE) status matters. Though the entire PPP loan amount was designated for payroll expenses, any shift in FTE numbers can affect the amount of loan forgiveness achieved. Exemptions exist and are worth review. For instance, if a dentist offered employees the opportunity to return to work and the employees refused, the Safe Harbor Exemption rules may be effectively used to achieve 100% forgiveness. 
  • Documentation is crucial, and expert advice a valuable resource. Don’t hesitate to consult a professional when questions arise.

Which 4 steps should you take before beginning the process?

Read the complete article, including four steps to take before beginning the PPP loan forgiveness application, at Benco’s Learning Center and stay current on the latest legislation and more here. CWA will continue to provide updates as they are announced.


Cain Watters & Associates LLC is an investment advisor registered with the Securities & Exchange Commission. Information provided does not take into account individual financial circumstances and should not be considered investment advice to the reader. Request form ADV Part 2A for a complete description of CWA’s financial planning and investment advisory services. There is no assurance that other client actual results will be similar to information presented. Estimated future results may not be obtained due to economic, business and personal circumstances.