SBA, Treasury issue guidance on calculating the maximum PPP loan amount

Federal Issues Agency Rule-Making & Guidance Department of Treasury SBA CARES Act Covid-19

On April 24, the Small Business Administration along with the Department of Treasury issued guidance on payroll costs and determining the maximum Paycheck Protection Program (PPP) loan amount for which a small business can apply. The guidance—organized by business entity type—contains nine questions with answers that address the self-employed, partnerships, corporations, nonprofit organizations, nonprofit religious and veterans’ organizations, tribal businesses, and limited liability companies. Small businesses must also document that they were in business as of February 15, 2020. The guidance notes that “[t]he U.S. government will not challenge lender PPP actions that conform to this guidance.”