The SBA provided new guidance today in the form of Q & A related to the Paycheck Protection Program (“PPP”). The Small Business Administration (“SBA”), in consultation with the Department of the Treasury, stated that they will continue to revise this document moving forward, but as of May 13, 2020 they provided answers to 46 questions in order to provide both clarity and guidance for both lenders and borrowers related to the PPP.
Complete guidance for the following topics and others can be found in the link below.
Will the SBA review individual PPP loan files and how will good-faith certification be handled;
Will a borrower’s PPP loan forgiveness amount be reduced if the borrower laid off an employee, offered to rehire the same employee, but the employee declined the offer;
Is an employer that repays its PPP loan by the safe harbor deadline (May 14,
2020) eligible for the Employee Retention Credit;
Lenders requirements related to:
replicating borrowers calculations;
determining applicability of affiliation rules;
dealing with authorized signors for borrowers;
use of online portals and forms;
reporting concerns related to FinCEN Rule CDD;
use of promissory notes.
Eligibility of obtaining PPP funds related to:
500 employee requirements;
agriculture, farmers and ranchers eligibility;
benefit payments for employees in excess of an annual salary of $100,000;
seasonal employees;
questions related to $10 million cap on franchises.
Questions that have arose after obtaining PPP funds such as:
paid sick leave;
employee housing allowances;
payroll costs of independent contractors and sole proprietors;
factoring federal tax requirements; and
how the 8-week period is tracked.