Thursday, May 14, 2020
By Sue Peirce, CPA | COVID-19 Response Team
On April 24, 2020, SBA posted an Interim Final Rule (IFR) in part stating:
“However, if you are a partner in a partnership, you may not submit a separate PPP loan application for yourself as a self-employed individual. Instead, the self-employment income of general active partners may be reported as a payroll cost, up to $100,000 annualized, on a PPP loan application filed by or on behalf of the partnership.”
On April 28, 2020, an IFR provided an alternative criterion for calculating the maximum loan amount for PPP loans issued to seasonal employers.
As certain PPP loans were issued to partnerships or seasonal employers before the additional guidance was issued, those businesses may not have received the maximum loan amount for which they are eligible. PPP lenders are authorized to increase existing PPP loans and to disburse funds to those employers to include appropriate amounts to cover partnership compensation with the IFRs described above.
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