PPP Loan Increases Allowed for Certain Partnerships and Seasonal EmployersMay 14, 2020
On May 13, the Treasury Department and the SBA released an interim final rule allowing Payroll Protection Program (PPP) lenders to increase existing PPP loans to partnerships or seasonal employers who were approved for loans before additional guidance was issued and did not include appropriate amounts in their loan amount calculations. Thus, partnerships that obtained PPP loans and did not include partner compensation or other eligible operating costs as outlined in the SBA interim final rule on April 14 or seasonal employers who did not calculate maximum loan amounts under the alternative method posted on April 28 may receive a loan increase even if the loan has been fully disbursed. In order to benefit from a loan amount increase, the borrower must provide required documentation supporting the increase and the lender must not have submitted its first SBA 1502 report to the SBA. Lenders must report loan data on a Form 1502 within 20 calendar days after the PPP loan is approved or by May 22, 2020 for loans approved before availability of the updated SBA Form 1502 reporting process. Any increased loan amounts pursuant to the interim rule may not exceed the maximum limit of $10 million for individual borrowers or $20 million for corporate groups.
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