[vi] Slightly different rules apply to the self-employed, farmers and other businesses. These differences are explained below. The instructions state that line 10 reads: “This determines whether at least 75% of the potential rebate amount has been used for payroll.” Corporate partners cannot apply for a separate PPP loan as self-employed. Partnerships are eligible for PPP loans, but the partnership and its partners are eligible for only one loan. The SBA submits that allowing partners to apply as self-employed persons would lead to unnecessary confusion as to which company has submitted an application and would lead to problems of coordination and distribution. Example 3: A borrower shares a rented home with another business. When determining the amount eligible for loan forgiveness, the borrower must report rent and utility payments in the same manner as on their 2019 tax returns or, in the case of a new business, on the borrower`s planned 2020 tax returns. Farmers and ranchers calculate their second draw loan using the new credit calculation rule described above, which uses the gross income from List F instead of the net income from List F. The preamble to the IFR states: Section 311 of the Economic Assistance Act added a new interim section 7(a)(37) to the Small Business Act (15 U.S.C. 636(a)(37)). This new article authorises the SBA to guarantee second-run loans on the same terms as first-run loans.
In accordance with Article 311, the SBA may extend loans under the Second Draw programme until 31. March 2021 collateral borrowers who have already received a first draw loan and who have used or will use the full amount of the original PPP loan for approved purposes no later than the expected disbursement date of the second drawing PPP loan. The creditor certifies that the information provided by the creditor to the SBA accurately reflects the creditor`s background regarding the loan, that the creditor has made his decision in accordance with the provisions of subsection V.2.a. and for a second PPP loan of $150,000 or less, if applicable, the lender reviewed the income reduction documents provided by the borrower and confirmed the dollar amount and percentage reduction in the borrower`s income. If the lender determines that the borrower has the right to waive part or all of the amount claimed under applicable law and regulation, the lender must request payment from the BSO at the time of the lender`s decision to the SBA. Subject to a review by the BSO of the borrower`s loan or loan applications, the BSO will return to the BSO the applicable remission amount, plus interest accrued up to the date of payment, no later than 90 days after the lender`s decision. The amount of the EIDL advance received by the borrower does not reduce the amount of the rebate to which the borrower is entitled and is not deducted from the amount of the rebate that the BSO transfers to the lender. [88] It is the lender`s responsibility to inform the borrower of the amount of the loan waiver (or the fact that the BSO has determined that no amount of the loan is eligible for credit forgiveness) and, if applicable, the date on which the borrower`s first payment is due. Labor costs are considered paid on the day paychecks are distributed or if the borrower initiates an ACH loan transaction. Labour costs incurred during the borrower`s last payment period in the covered period may be waived if paid no later than the next normal settlement date.
Otherwise, salary costs must be paid during the period covered to be eligible for the rebate. Labour costs are generally incurred on the day the employee`s salary is earned (i.e. The day the employee worked). For employees who are not working but are still on the borrower`s payroll, labor costs are incurred according to the schedule set by the borrower (usually every day the employee would have done work). I have prepared all my PPP loan forgiveness documents, but one thing I can`t find. Completing your PPP pardon application varies greatly depending on whether you have employees or not. Note: On January 17, the BSO updated its credit calculation guidelines to reflect the changes to the AAC. Step 1.Enter the borrower`s average FTE between February 15, 2020 and April 26, 2020. Follow the same methodology used to calculate the average FTE in the spreadsheet tables in Appendix A of the KKKP. Total for all employees and enter:____ Step 2. Enter the borrower`s total FTEs during the borrower`s payment period, including February 15, 2020.
Follow the same method as in step 1:___. Step 3. If the entry in step 2 is greater than step 1, go to step 4. Otherwise, safe harbour rule 2 for FTE reduction is not applicable and the borrower must complete line 13 of Schedule A of the RAP by dividing line 12 by line 11 of that schedule. Step 4.Enter the borrower`s total FTEs (a) for a PPP loan made before December 27, 2020 to December 31, 2020 or (b) for a PPP loan after December 27, 2020, on the last day of the covered period:___. Step 5. If the entry in Step 4 is greater than or equal to Step 2, enter 1.0 on line 13 of Schedule A of the APP. the Safe Harbour FTE reduction of 2 was achieved.