New Info – SBA Paycheck Protection Program Application UPDATE
|Please be advised that additional provisions and clarifications were published last night regarding the Paycheck Protection Program that we wanted to share with you.|
- Interest is to be charged at 1% and can be forgiven (accrued).
- E-Signatures can be used.
- Fill out the new application which able to be downloaded from the bottom of this notice.
- Applicants need to demonstrate paid employees payroll around February 15, 2020.
Questions Confirmed:Can lenders rely on borrower documentation for loan forgiveness? Yes. The lender does not need to conduct any verification if the borrower submits documentation supporting its request for loan forgiveness and attests that it has accurately verified the payments for eligible costs. The Administrator will hold harmless any lender that relies on such borrower documents and attestation from a borrower. The Administrator, in consultation with the Secretary, has determined that lender reliance on a borrower’s required documents and attestation is necessary and appropriate in light of section 1106(h) of the Act, which prohibits the Administrator from taking an enforcement action or imposing penalties if the lender has received a borrower attestation.
Do independent contractors count as employees for purposes of the Payroll Protection Program (PPP) loan forgiveness? No, independent contractors have the ability to apply for a PPP loan on their own so they do not count for purposes of a borrower’s PPP loan forgiveness.
The SBA will issue additional guidance on loan forgiveness in the near future. We are continually researching all variables of the changes and implications of this historic program and related COVID-19 federal and state assistance for you and your business needs. We will update you with new information as it becomes available. Please continue to monitor your emails and review our blogs regarding this information on our website at https://hc-cpa.co/covid-19-updates/ as we we address the new legislation and corresponding rules.