On March 3, 2021, the Paycheck Protection Program (“PPP”) FAQs were updated to reflect changes made by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act enacted on December 27, 2020.  The latest version of the PPP FAQs can be located here: Paycheck-Protection-Program-Frequently-Asked-Questions.pdf (treasury.gov)

An Interim Final Rule on Revisions to Loan Amount Calculation and Eligibility was posted by the Small Business Administration (“SBA”) on March 3, 2021, which can be located here:  SBA PPP IFR Loan Amount Calculation and Eligibility (3-3-21).pdf, and contains several changes, including but not limited to the following:

• How to calculate the maximum PPP Loan amount for borrowers that have income from self-employment and file an IRS Form 1040, Schedule C and borrowers that employ other individuals
• How the proceeds of a PPP Loan can be used
• Limited safe harbor with respect to certification concerning need for a PPP Loan request
• How the maximum amount of a Second Draw PPP Loan to a borrower that has income from self-employment and files an IRS Form 1040, Schedule C is calculated, and depending on whether the borrower has employees
• What documentation are borrowers who are individuals with self-employment income who file an IRS Form 1040, Schedule C or F required to submit to their lender with their request for PPP Loan forgiveness
• SBA’s new Borrower Application Forms for use by borrowers that are Schedule C filers and elect to calculate their PPP Loan amount using gross income, as allowed under this Interim Final Rule:
  • SBA Form 2483-C will be used by such borrowers when applying for First Draw PPP Loans:  Borrower Application 2483-C.pdf (sba.gov)
  • SBA Form 2483-SD-C will be used by such borrowers when applying for Second Draw PPP Loans: Borrower Application 2483-SD-C.pdf (sba.gov)
  • Removes the eligibility restriction that prevents businesses with owners who have nonfinancial fraud felony convictions in the last year from obtaining PPP Loans
  • Removes the eligibility restriction that prevents businesses with owners who are delinquent or in default on their Federal student loans from obtaining PPP Loans

It is important to note that the last day to apply for and receive a PPP Loan is March 31, 2021.

The Attorneys at Levene Gouldin & Thompson, LLP are available to provide advice and counsel concerning these new statutory obligations and other matters related to COVID-19.