Guidance on PPP loans has been a whirlwind to say the least. Many people submitted applications based on the rules at the time, and then had the rules change after the fact. The SBA just published new guidance on May 13thwhich will allow some of those situations to be rectified. There are two situations now where you can go back and get additional funds on your PPP loans.
- If a partnership received a PPP loan that did not include the compensation of the partners, the SBA will now allow you to get another subsequent disbursement of funds on your PPP loan. Basically you can go back to the bank and amend your PPP application to include the partners compensation and the bank will fund that additional amount. At the time when many partnerships were applying it was unclear if partner compensation would count, now we know that it does count (up to $100k) so the SBA will allow you to correct that situation and get additional money as part of your PPP loan.
- For seasonal employers they have had very challenging time applying PPP rules to their unique seasonal situations. The SBA guidance now allows for those seasonal employers to amend their PPP applications to request more money based on the new guidance that has been published for the seasonal employers. An alternative criterion for seasonal employers to determine the maximum PPP loan came out April 28th, so for the ones who applied prior to that date they can go back and use the newer guidance to get additional funds as part of your PPP loan.
Stay tuned for more guidance, but this was definitely a bit of good news for partnerships or seasonal businesses that lost out on some PPP money when the rules changed after their applications. Hopefully we’ll see more guidance to this effect.
Contact Chris Wittich, CPA, MBT at firstname.lastname@example.org for additional guidance.