ARTICLE
On Friday, May 22nd, the U.S. Small Business Administration (SBA) and the Department of Treasury released additional guidance pertaining to the Paycheck Protection Program, specifically as it relates to the loan forgiveness. Many borrowers are nearing the end of their eight-week covered period. The Interim Final Rule (IFR) issued on May 22nd provides further clarification of the “incurred” or “expended” definitions regarding eligibility of qualified expenditures (both payroll and non-payroll) incurred during the covered period. Additionally, the IFR addresses other key matters including hazard pay and bonus expense inclusion, full-time equivalent and safe harbor clarifications, potential loan forgiveness reduction implications, and the documentation required to submit for loan forgiveness. The matters addressed in this IFR have impact on the forgiveness calculation and are critical for borrowers to understand prior to the end of their covered period. We continue to monitor these developing issues and will provide an in-depth analysis of the additional guidance provided by the SBA. A link to the full IFR released on May 22nd is included here.