Last week, the SBA issued new rules regarding PPP loan forgiveness. The new rules provide guidance on the PPP loan forgiveness after the Paycheck Protection Flexibility Act of 2020 was passed earlier this month extending the period to spend the funds from 8 weeks to 24 weeks.
The interim final rule clarifies the amount eligible for forgiveness stating the full principal amount of the loan plus accrued interest will depend on the amount spent on PPP eligible expenses over the new 24 week period. Here are some of the clarifications provided in the new interim final rule:
- Payroll costs including salary, wages and tips up to $100,000 may be included per employee. For the new 24 week period, this is a maximum of $46,154 per individual.
- Owner compensation replacement calculated based on 2019 net profit is limited to 2.5 months worth (2.5/12) up to $20,833 for the new 24 week period.
For more updates on the coronavirus and PPP loans, continue to check out our COVID-19 resources page at https://www.holbrookmanter.com/covid-19-updates-resources/.