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More Updates: Paycheck Protection Program Loan Information 4-3-2020

On Thursday April 2, 2020 there was more breaking news regarding the Paycheck Protection Program (PPP)Loans. 

 Final Borrower Applications

The SBA and US Department of the Treasury released a Final Borrower Application.  

Interim Final Rule: Independent Contractors

The Small Business Administration issued 13 CFR Part 120 Business Loan Program Temporary Changes of the Paycheck Protection Program – Interim Final Rule. The rule includes a clarification regarding independent contractors which may significantly changes how some employers will calculate their Average Annual Payroll number. This is a change from the initial guidance. The ruling states the following on page 11 item H: 

“Do independent contractors count as employees for purposes of PPP loan calculations?No, independent contractors have the ability to apply for a PPP loan on their own so they do not count for purposes of a borrower’s PPP loan calculations.”

Click Here to see the interim final rule

Loan Applications on Friday, April 3rd: Lenders Ability to Accept

  • Late Thursday April 2, 2020, we learned that Chase Bank made the following statement:  “Financial institutions like ours are still awaiting guidance from the SBA and the U.S. Treasury. As a result, Chase will most likely not be able to start accepting applications on Friday, April 3rd, as we had hoped.” To read the full statement on the Chase Bank website to to or Click Here
  • Lenders ability to take applications may be changing on an hourly basis. 
  • Banks have indicated that the loan process will only be available to bank customers in existence as of 2/15/2020. Please check with your bank for their loan documentation requirements. 
  • There have also been indications from other banks that they are still not ready to take applications.  We suggest you inquire with your bank regarding the loan application availability.

Coordination of PPP Loan, Employee Retention Credit and Delay of Payment of Employer Payroll Taxes

  • If you use the employee retention credit or the delay of employer payroll taxes, it appears that you CANNOT utilize the PPP Loan. We recommend you do not use these two benefits until you have determined your ability to obtain a PPP Loan. 

Bland Garvey has prepared a chart to try and summarize the major components of the CARES Act for Small Business. Click here to view or download a larger copy


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