The SBA issued a new Borrower Application Form as well as an Interim Final Rule regarding the Paycheck Protection Act (PPP) last night.
The interim rule clarifies computation of payroll costs. Costs that are not included when computing “Payroll Costs” for the initial loan application and for loan forgiveness are:
“Federal employment taxes imposed or withheld between February 15, 2020 and June 30, 2020, including the employer’s and employee’s share of FICA (Federal Insurance Contribution Act) and Railroad Retirement Act taxes, and income taxes required to be withheld from employees.”
The conclusion is that all federal taxes imposed or withheld during the 12-months prior to the loan may be included in payroll costs EXCEPT for the period shown above.
In addition, according to information from NADA legal department, the new employee retention credit and the ability to defer the employer’s portion of its employees’ social security payments, as included in the CARES Act, are not available if participating in the PPP.
See below for an updated SBA Franchisor Identification Number sheet.
Please see SBA’s PPP webpage for additional information regarding the PPP.