May 22 PPP Final Interim Rules Provide Further Guidance And Some Surprises

Additional rules about the Payroll Protection spending were released on Friday. The following article is a readable analysis of the changes. One of the most significant changes limits the amount of salary the owner of an S corporation can pay themselves.  Also discussed are tips, how to account for employees who have resigned or don't want to come back to work, and how to count full time equivalent employees.

Forbes
May 23, 2020, 05:57pm EDT

Alan Gassman, Contributor

May 22 PPP Final Interim Rules Provide Further Guidance And Some Surprises

Last Friday night the SBA gave new weekend plans to those of us who advise borrowers and banks on how to plan for and understand the PPP loan forgiveness rules and process.

The new Interim Final Rules consist of 26 pages that build upon what we learned from the Loan Forgiveness Application and Instructions, which cleared up several items, and resulted in several questions, and now some have been answered. A second set of Interim Final Rules, also released on May 22nd and consisting of 19 pages, provide guidance with respect to the SBA loan review process as well as borrower and lender responsibilities associated therewith.

The Application and Instructions are discussed generally in my web post of May 16th, and in great detail in Toni Nitti’s web post of May 16, 2020.

Read the full article here.