Breaking news from the ABA:
With the Small Business Administration reopening its E-Tran system for Paycheck Protection Program applications on Monday morning, SBA last night issued guidance to help borrowers and lenders calculate and document the maximum PPP loan amount a business may be eligible for. The guidance covers several situations about which lenders have sought clarity.
The guidance addresses calculations and documentation requirements for applicants that are:
- Self-employed with no employees.
- Self-employed with employees.
- Self-employed farmers who report income on Schedule F.
- Subchapter S and C corporations.
- Nonprofit organizations.
- Eligible nonprofit religious organizations, veterans’ organizations and tribal businesses.
- Limited liability company owners.
“Borrowers and lenders may rely on the guidance provided in this document as SBA’s interpretation of the CARES Act and of the Paycheck Protection Program Interim Final Rules,” SBA added in the guidance.
“The U.S. government will not challenge lender PPP actions that conform to this guidance and to the PPP Interim Final Rules and any subsequent rule-making in effect at the time.”
Click here to read the guidance.