The SBA and U.S. Treasury Clarify 60% Payroll Rule and Partial Forgiveness Guidelines
The information released in the PPP Flexibility Act last week seemed to indicate that the borrower had to spend at least 60% on payroll, or none of the loan would be forgiven. Today, Monday, June 8, 2020, the Small Business Administration in conjunction with the U.S. Treasury, released a statement clarifying that borrowers could in fact still get partial loan forgiveness if they did not spend at least 60% on payroll.
Further guidance, including a modified borrower application form, and a modified loan forgiveness application implementing the amendments to the Paycheck Protection Program are expected in the near future. We will distribute the updated information as soon as it is released.
If you would like to read more about the changes and read the statement released by the SBA in conjunction U.S. Treasury, click here.