05/13/20 – Interim Rule for Partnerships and Seasonal Employers
Today, May 13th, the Treasury issued its 10th Interim Rule for the Paycheck Protection Program and its 46th FAQ. The FAQ states that the SBA created a safe harbor whereby any PPP loan less than $2 million will not be subject to review or further scrutiny in regards to the good-faith certification requirement. This means that you won’t need to provide additional support that you needed the loan in order to keep your business up and running if your loan is under $2 million.
The latest Interim Rule only impacts partnerships and seasonal employers who applied for or received their PPP funds prior to April 14th. If you applied for or received funds before that date, you may not have calculated your maximum loan amount correctly because the guidance had not been issued. As such, you may be eligible for additional PPP funds. Here are the steps you need to follow in order to claim any additional funds:
- Contact your banker and ensure that they have NOT filed SBA Form 1502 yet. This form is required to be filed within 20 calendar days after a PPP loan is approved, and once it has been filed, the loan cannot be increased.
- Recalculate your loan.
- For partnerships: The SBA issued guidance on how to calculate the loan amount. We’ve added a new Partnership PPP Loan Calculator to help you calculate the maximum loan amount.
- For seasonal employers: The SBA offered three different time periods to calculate the maximum loan amount. We set up a spreadsheet to calculate the maximum loan amount using these time periods. Due to its complexity, please reach out to us if you need assistance.
- Average total monthly payments for payroll from 2/15/19 – 6/30/19,
- Average total monthly payments for payroll from 3/1/19 – 6/30/19, or
- Average total monthly payments for payroll for any 12 week period between 5/1/19 – 9/15/19.