Passing along brief updated guidance that was published by the SBA last night.
- A revised application was released, which can be accessed here.
- E-signatures can be used. Confirm with your lender regarding protocol for submission
- Payroll period to be used is generally calendar year 2019, unless you are a seasonal business
- Confirms independent contractors do not count as employees when calculating payroll costs.
- Question 7 changed. Currently, it reads: “Is the United States the principal place of residence for all employees of the Applicant included in the Applicant’s payroll calculation above”. It previously inquired about the U.S. citizenship status of 20%+ owners.
- Clarified that paid leave under the Families First Coronavirus Reponses Act should be excluded from use in the calculation. Businesses will be reimbursed via tax credits – prevents double-dipping.
- Interest rate has been increased from 0.5% to 1.0%.
- Maturity date is 2 years. 10 years was the maximum under the statute.
- Confirms loans are on a first-come, first-served basis
Best wishes to all as you continue with the loan application process.
The Partners of
Russell Thompson Butler & Houston, LLP