Earlier this week, the Small Business Administration (SBA) and the Treasury Department issued additional guidance on the Paycheck Protection Program (PPP).
On Tuesday, the SBA issued the Interim Final Rule announcing additional eligibility criteria and requirements for certain pledges of loans for the PPP. Among other things, the rule provides specific guidance on calculating the maximum loan amount for individuals with self-employment income who file a Form 1040, Schedule C. Additionally, the new guidance notes that self-employment income of partners in a partnership may be reported as a payroll cost, up to $100,000 annualized, on a PPP loan application filed by or on behalf of the partnership (or LLC filing taxes as a partnership). The guidance also makes clear that individual partners may not submit a separate PPP loan application as a self-employed individual.
On Wednesday, the Treasury Department and the SBA updated their joint PPP FAQ document and it now includes guidance on 28 questions. This update mostly answered lender related FAQs and some FAQs related to specific businesses. However, the document is updated regularly and Big “I” members may find some of the earlier guidance or the future updates helpful depending on their individual situations.
According to the Small Business Administration (SBA), as of this morning, the PPP had officially exhausted its $350 billion made available through the CARES Act. The loans went to nearly 1.5 million small businesses. With the program now out of money, millions of additional businesses are left without the funds necessary to keep their workers employed. Congress continues to negotiate on new funding for the PPP.
The Big “I” will continue to provide updates on the program through Markets Pulse and News & Views articles. We have also posted this guidance from the SBA and Treasury on our Government Affairs website and will continue to post any additional guidance as things are updated.
Wyatt Stewart is Big “I” senior director of federal government affairs.