July 14, 2020

Volume X, Number 196

July 13, 2020

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Additional Guidance for Seasonal Employers Under the Paycheck Protection Program

On Monday, April 27, 2020, the U.S. Treasury and SBA released the Interim Final Rule on Additional Criterion for Seasonal Employers (the “April 27 Guidance”). The April 27 Guidance expands the time period at which seasonal employers can look in order to (i) calculate average monthly payroll expenses and (ii) determine whether a seasonal employer was operational when applying for a loan under the Paycheck Protection Program (“PPP”). 

Previously, seasonal employers were permitted to use any 12-week period beginning February 15, 2019, or at the election of the borrower, March 1, 2019, and ending June 30, 2019 in order to calculate their maximum loan amount. Under the April 27 Guidance, the Treasury and SBA have added the period from May 1, 2019 to September 15, 2019 to the previously-specified reference period seasonal employers may use to calculate their maximum loan amount. As such, seasonal employers may now use any consecutive 12-week period from February 15, 2019 to September 15, 2019 when calculating their average total monthly payroll amount. 

Previous guidance permitted lenders to consider whether a seasonal employer was in operation during any 8-week period between February 15, 2019 and June 30, 2019 in determining whether the employer could be considered operational on February 15, 2020 and, therefore, eligible to apply for a loan under the PPP. The April 27 Guidance also expands the timeframe for this consideration and adds that businesses that were not operational (i.e. businesses that were “dormant”) as of February 15, 2020, will be considered to have been operational as of such date if the business was operational for any 8-week period between May 1, 2019 and September 15, 2019.

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About this Author

James Greifzu Corporate Securities Lawyer Wiggin Dana
Counsel

James serves as Counsel in Wiggin and Dana’s Stamford office where he represents corporate and individual clients in connection with mergers, acquisitions, divestitures, commercial agreements, and other complex corporate transactions and related corporate governance matters. He advises clients across multiple industries, including manufacturing, retail, pharmaceutical, biotech, medical cannabis, and several services sectors.

James has experience representing acquirers, issuers, and financial advisors in private and public offerings of equity securities in...

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Joshua Kutticherry Corporate Attorney Wiggin and Dana New York, NY
Associate

Joshua Kutticherry is an Associate in Wiggin and Dana’s Corporate department in the firm’s New York office.

Prior to joining Wiggin and Dana, Joshua worked as an Associate for an international law firm and a boutique law firm, both in New York. Most recently, Joshua worked as Counsel for a New York-based law firm, where he advised emerging companies, founders and investors; drafted and assisted clients in managing equity incentive plans and grants; provided strategic advice regarding legal implications of business decisions; and attended to clients’ general legal, compliance, employment, intellectual property and corporate governance inquiries.

Joshua earned his J.D. from Fordham University School of Law as a Paul Fuller Scholar recipient. While at Fordham University, Joshua served as Co-Chair of the Fordham OUTLaws and as a research assistant and participated in the South Asian Law Students Association. He also completed a Judicial Internship for the Supreme Court of Ghana. He earned his Bachelor of Science degree from New York University as a finance and international business major with a minor in English.

Currently Joshua serves on the New York City Bar Association; as SQS Leadership Council Member and Co-Chair of Grants Committee for Stonewall Community Foundation; and as Advisory Board Member for the New York Legal Assistance Group LGBT Law Project.

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