SBA Paycheck Protection Loan Guidance Just Released
Published by
Laura Sprouse
on
APRIL 3, 2020
*Please seek out latest guidance on our website as this information is updated frequently*
The SBA issued Interim Guidance late yesterday in anticipation of the commencement of lending under the Paycheck Protection Program (PPP) today. The major highlights of the guidance, which represent changes from the previous guidance include:
Change in Interest Rate – The loan interest rate is 1.0%, which is up from the previously reported 0.5% rate.
Independent Contractors – A business cannot use amounts paid to independent contractors in the calculation of average payroll costs for purposes of determining the loan amount. This clarification is because independent contractors are eligible to apply for a PPP loan on their own.
Loan Forgiveness – No more than 25% of the loan proceeds can be used for non-payroll costs (mortgage interest, rent and utilities) to qualify for loan forgiveness.
If you have already submitted your application to your lender, please review these provisions and contact your lender as soon as possible to discuss modifications to your application.
If you would like more information about the SBA loan program, visit our Small Business Relief page on our website at https://becpas.com/small-business-relief/. Please reach out to Brown Edwards if we can assist you with your application or answer any questions about the program.