On Aug. 24, the Small Business Administration released an additional interim final rule that provides guidance regarding treatment of owners and forgiveness of certain nonpayroll costs for those who participate in the Paycheck Protection Program.
This new rule amends a previous interim final rule released April 2 regarding implementation of Sections 1102 and 1106 of the CARES Act. Specifically, the new rule states owner-employees with less than a 5% ownership stake in a C or S corporation are not subject to the owner-employee compensation rule. It also clarifies the amount of loan forgiveness requested for nonpayroll costs may not include any amount attributable to the business operation of a tenant or sub-tenant of the PPP borrower or, for home-based businesses, household expenses. However, under some circumstances, rent payments remain eligible for loan forgiveness.
The new interim final rule is expected to be published in the Federal Register soon.
Employers who received a PPP loan and want to apply for forgiveness can submit one of two forms to their lender. View the primary revised PPP forgiveness application for borrowers.
For more information about the PPP loan forgiveness application, it is recommended you contact the lender that made the loan. For more general information about the PPP, visit the COVID-19 Resources for Roofing Contractors section of NRCA’s website or visit SBA’s website or Treasury.gov/CARES.
