New Guidance Issued on Paycheck Protection Program Loans

New guidance was posted to the Treasury website regarding the Paycheck Protection Program (PPP), which authorizes up to $349 billion toward job retention and certain other expenses for small businesses.

Small businesses and eligible nonprofit organizations, veterans organizations, and tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

The new guidance includes:

• 1099s are NOT included in the payroll costs borrowing base, as independent contractors have the ability to apply for their own PPP loan
• Interest rate changed from 0.50% to 1%
• PPP loans are first-come, first-served
• Calculation of maximum borrowing amount reads “from the last twelve months”
• There are two application forms available: (1) SBA Form 2483 for the borrower, and (2) SBA Form 2484 for the lender to complete

For more information or to access the PPP forms, visit: https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses