On May 13, 2020, the SBA issued its interim final rule on loan increases, allowing partnerships and seasonal employers to receive an additional loan disbursement if their Paycheck Protection Program (PPP) loan amount was miscalculated due to the interim final rule regarding partner compensation not being issued until April 14, 2020 or the alternative criterion regarding seasonal employer loan calculation posted on April 28, 2020.
The guidance issued subsequent to lenders accepting applications has resulted in many partnerships omitting partner compensation reported on Schedule K-1 from their application that would qualify for inclusion in calculating the PPP loan amount, and seasonal employers using the measurement period provided for calculating their average monthly payroll where using an alternative measurement period as allowed per the subsequent guidance would result in higher PPP loan amount.
As of May 10, 2020, there was $120 billion remaining in available funding for the program – we anticipate that due to recently published FAQs that the remaining funds will not last long.
If your business is a partnership or seasonal employer that received a PPP loan, we recommend that you contact your BerganKDV advisor as soon as possible to determine if you are eligible for additional funding based on the new ruling. The full interim final rule can be found here.
Our teams at BerganKDV are rallying together and working around the clock to ensure we’re up and running so you can be up and running. Whatever situation you’re faced with, at any time, you can call our task force and we’ll get you the answers, the listening ear and/or the quick support you need: 888-356-2295 or firstname.lastname@example.org.