Legislation passed by Congress and awaiting signature by the president is set to extend the date when companies can apply for a Paycheck Protection Program (PPP) loan. Once signed, eligible borrowers will have until August 8 to submit an application. The new legislation doesn’t make any other changes to the PPP, such as maximum loan amount available or borrower eligibility.
Additionally, in consultation with the US Department of the Treasury, the Small Business Administration recently published guidance to assist various businesses with calculating their payroll costs to determine the maximum amount of a PPP loan for which they’re eligible to apply. This guidance provides step-by-step explanations to be used by self-employed individuals with no employees, self-employed individuals with employees, self-employed farmers, partnerships, S corporations and C corporations, eligible not-for-profits and eligible not-for-profit religious institutions, veterans organizations, and tribal businesses to calculate the maximum amount that can be borrowed as well as documentation that must be provided to substantiate the applied-for PPP loan amount.
Additionally, clarification was provided for owners of limited liability companies and those who are self-employed but were not in operation between February 15, 2019 and June 30, 2019.
If you have any questions regarding the content of this alert, please contact Danielle Katz, associate, at dkatz@barclaydamon.com.
We also have a specific team of Barclay Damon attorneys who are actively working on assessing regulatory, legislative, and other governmental updates related to COVID-19 and who are prepared to assist clients. Please contact Yvonne Hennessey, COVID-19 Response Team leader, at yhennessey@barclaydamon.com or any member of the COVID-19 Response Team at COVID-19ResponseTeam@barclaydamon.com.