The first thing you should know about PPP loans is that they are no longer available. PPP loans were available to help small businesses, including dental businesses, navigate the economic losses that were experienced during the height of the COVID-19 pandemic. These low-interest loans were designed to be “forgivable” and easily converted to grants. Business loans for dentists are still an option that can help.
PPP stands for Paycheck Protection Program. The idea behind these loans was that employers would keep their employees working during the COVID-19 crisis. Part of the loan proceeds had to be used to pay employees. Other overhead costs could also be funded through the PPP loan program.
Some small business owners, including dentists' offices, complained that the bulk of the available funding was granted to corporate giants, which left the small business owner with a lack of opportunity. Like many government-backed programs, the application process was complex, and there was a mad dash to apply because the windows were narrow. As of May 31, 2021, the program ended.
For many new dental businesses that had opened in the 12 month period before the COVID crisis in 2019, providing documentation for these types of loans was nearly impossible. While the program was able to help many people, unfortunately, new businesses were left with few options.
For many dental offices, business loans for dentists have been a saving grace. Business loans for dentists helped many dental offices keep their employees paid during the COVID-19 pandemic shut down. It was the one solution that afforded these dental businesses a bit of financial “breathing room”.
It can be very expensive to start up a dental business, and business loans for dentists are an easy way to fund those expenses. You can expect to spend about $70,000 on IT support, marketing, and legal consultations alone. Pre-pandemic, these loans helped mostly with startup costs. In the post-pandemic world, they are helping dental businesses regain their financial footing.
This type of business loan can be the ideal solution for dental businesses that are starting out and those that are in recovery mode from the pandemic. To learn more about your loan options, call us today!