On August 24, 2020, The U.S. Small Business Administration (SBA) and Treasury issued an interim final rule addressing Paycheck Protection Program (PPP) forgiveness issues related to owner-employee compensation and the eligibility of nonpayroll costs.
This guidance provides that owner-employees with less than 5% ownership are exempted from the PPP owner-employee compensation rule for determining the amount of their compensation for loan forgiveness. The new interim rule also covers provisions designed to maintain equitable treatment between a business owner that holds property in a separate entity and one that holds the property in the same entity as its business operations.
Additional information about these issues and calculation examples can found in this Journal of Accountancy article.
If you have questions about PPP loan forgiveness, please contact Bob Grossman, Don Johnston or Mike Weber at 412-338-9300.
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- More PPP FAQs Released by the SBA
- SBA Issues New PPP Loan Forgiveness FAQs
- New SBA Interim Final Rule Offers Further Guidance on PPP Loan Forgiveness
- Simpler PPP Forgiveness Application & Updated Program Guidance Released by SBA
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- SBA & Treasury Announce Forthcoming Updates to PPP Rules
- PPP Flexibility Act Signed Into Law
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- Paycheck Protection Program Loan Forgiveness Application Released
- Further SBA Guidance Extends Safe Harbor Deadline for PPP Loans
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