iThe Small Business Administration (the “SBA”) released additional guidance today (the “Interim Rule”) on the Paycheck Protection Program (“PPP”). The Interim Rule provides additional guidance for sole proprietors applying for the PPP, as well as additional guidance on eligibility.
Guidance for Sole Proprietors: The Interim Rule enumerates specific items that sole proprietors need to provide a PPP Lender when seeking a loan.
Forgiveness: The SBA clarified that sole proprietors will need to provide the following information to their PPP Lender to substantiate the forgiveness amount:
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Form 941;
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State quarterly wage unemployment insurance tax reporting forms or equivalent payroll processor records that best correspond to the 8 week period (with evidence of any retirement and health insurance contributions);
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Business rent;
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Business mortgage interest payments on real or personal property; and
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Business utility payments.
Eligibility: The SBA clarified that:
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Eligible businesses owned by directors or shareholders (of less than 30% equity interest) of a PPP Lender may apply for a PPP loan. Officers and key employees of a PPP Lender may obtain a PPP loan only from a different PPP Lender than the one they are associated with.
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Those engaged in legal gambling are eligible for a PPP loan if (a) legal gaming revenue (net of payouts) didn’t exceed $1 million in 2019, and (b) legal gaming revenue (net of payouts) comprised less than 50% of the business’s total revenue in 2019.
A link to the full Interim Rule can be found here.
