The SBA continues to publish FAQs and clarify guidance on the Paycheck Protection Program (PPP). Below are several timely updates:
If your business is a partnership and you applied for the PPP loan before April 14th but did not include the partners’ income subject to self-employment taxes, you can now ask your lender to increase your PPP loan. Seasonal employers who calculated the loan without using the alternative criterion posted on April 28th may also ask for an increase.
The bank will be able to increase your loan as long as Form 1502 has not yet been filed with the SBA. You will have to provide the necessary documents to support the increase in the loan
According to guidance posted by the U.S. Small Business Administration (SBA) on Wednesday, May 13, businesses that accepted PPP funds of less than $2 million will be assumed to have performed the required certification concerning the necessity of their loan requests in good faith.
The SBA said the safe harbor will promote economic certainty for PPP borrowers with limited resources as they work to retain and rehire employees. The $2 million threshold also will help the SBA conserve its resources and focus its reviews on larger loans.
The SBA announced last week that, with over $100 billion still available in PPP funding, New Jersey small businesses and non-profits are encouraged to apply for the program if they have not yet done so.
While almost 111,000 NJ small businesses have received loan funds, the local SBA leaders hope that a significant portion of the remaining funds is dispersed to NJ businesses to help them stay afloat during this time.
The loan provides low interest and potential forgiveness for payroll and specific expenses during the eight-week period. The loan intends to help businesses retain their employees during these unprecedented times. For a list of approved lenders, loan details, how to calculate PPP loan amounts, and more, go to www.sba.gov/ppp.
Alloy Silverstein’s advisors are hosting a complimentary webinar on Tuesday, May 19th to discuss the critical need for PPP cash flow planning for your small business. Less than 10 seats are remaining. For more information and to register, click here.
If you have any questions or concerns, Alloy Silverstein’s accountants and advisors are here to help. Contact us at (856)667-4100 or by email at solutions@alloysilverstein.com.
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