P.O.Box 1748 • 44 Brennan St. Watsonville, CA 95077 • ☎ (831) 724-3900

Updates from the SBA and Treasury

The SBA and Treasury have released new guidance for Paycheck Protection program loans, including an interim final rule on forgiveness and an interim final rule on procedures and related borrower and lender responsibilities.

 

The IFR on forgiveness: Click Here

The IFR on borrower and lender responsibilities: Click Here

Loan forgiveness worksheet, previously released: Click Here

 

Please note some important clarifications in these IFRs:

  • Per the previous worksheet, if an employer fails to spend 75% of their loan on payroll, their forgiveness is reduced proportionally, not forfeited entirely.
  • The 8-week payroll forgiveness period begins either on the date of disbursement OR the first day of the first payroll cycle in the covered period, to better align with payroll periods.
  • You may elect to pay bonuses, hazard pay, or any other form of compensation above what employees previously made, as long as that compensation does not exceed the $100,000 salary rate, and you may pay these employees wages even if they are not working (as they may not be able to due to COVID-19 restrictions).

A borrower’s forgiveness will not be reduced if the borrower makes a good faith effort to rehire an employee who declines the offer