On May 13, the Small Business Administration issued a new interim final rule related to partnerships and seasonal employers allowing these businesses to submit an additional request for more Paycheck Protection Program (PPP) funding. This interim final rule addresses situations where businesses may have submitted their loan applications to their lenders prior to the issuance of the April 14 interim final rule related to calculation of PPP funding for partners in a partnership. It also allows for seasonal employers to do the same based upon the interim final rule published on April 28 which established alternative criteria for calculating maximum loan amounts for seasonal employers.
This new interim final rule allows lenders to increase existing PPP loans to these partnerships and seasonal employers to include the additional amounts which cover qualified partner compensation in a partnership and the maximum calculated amount for seasonal employers. Therefore, even though the interim final rule posted on April 28 requires PPP loans to be disbursed in a one-time payment, this May 13 interim final rule authorizes the lender to make an additional disbursement prior to the submission of the SBA Form 1502 that includes this updated total loan amount.
For more information related to this additional PPP loan disbursement opportunity, click here to read the May 13 Interim Final Rule related to this matter. Additionally, the Journal of Accountancy has also published an article explaining this new interim final rule in more detail.