Category: Timely Opportunities
On April 14, 2020, the SBA posted an interim final rule stating that partnerships could use the self-employment income of general active partners when calculating payroll costs for the PPP loan amount.
On April 28, 2020, the Department of Treasury posted an interim final rule providing an alternative criteria for seasonal employees to calculate their maximum loan amount. A seasonal employer may alternatively elect to calculate its maximum loan amount as the average total monthly payments for payroll during any consecutive 12-week period between May 1, 2019 and September 15, 2019.
Since PPP loans were approved before this additional guidance, some partnerships and seasonal employers may not have received their maximum loan amounts. The SBA, through this new interim final rule, is allowing lenders to increase loan amounts if these changes were not considered in the original calculations.
These changes cannot be made if your lender has already submitted SBA Form 1502, and these changes cannot be made by the lender after May 22, 2020.
If you have any questions, please contact your Kerkering Barberio team member at (941) 365-4617 or visit our website at https://www.kbgrp.com/resources/covid-19-updates.
Our firm provides the information in this website post for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Articles posted on our website are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.