With an effort to keep everyone informed, we wanted to provide an update to the Paycheck Protection Program, which is the Small Business Administration 7(a) lending program, we are sure you have become familiar with. Last night, on April 2nd, the final rules were published and provided to the banks. The updated rules and changes will likely cause a slight delay in some banks’ ability to process the loans, as they have been put in a very tough position. One of the biggest changes is the rate is now set at 1% with the 2-year amortization remaining. Also, note the clarification that independent contractors do not count as employees for purposes of PPP loan calculations. Here is the link to the final report https://rpbcpa.com/wp-content/uploads/2020/04/PPP-IFRN-FINAL-gca-614.pdf, which includes a section of “What Borrowers Need to Know”.
We hope this helps as we know many of you are finalizing your applications and working closely with the different banks.
There are certain to be more updates and changes. You can always click here for more COVID-19 resources relating to the above information https://rpbcpa.com/covid-19-support/ as we will do our best to keep it updated with information we think is useful.