The Department of Treasury issued an interim final rule authorizing eligible lenders to use alternative criteria to calculate the maximum loan amount for Paycheck Protection Program (PPP) loans provided to seasonal employers.
The CARES Act permits season employers to calculate their maximum loan amount by using their monthly average payments for payroll during “the 12-week period beginning February 15, 2019, or at the election of the eligible [borrower], March 1, 2019, and ending June 30, 2019.” To ensure employers who have summer seasonal businesses are able to obtain financial assistance, the interim final rule allows season employers the option of using any consecutive 12-week period between May 1, 2019 and September 15, 2019 for determining its maximum loan amount.
The interim final rule is effective on April 30, 2020. Public comments are due May 30, 2020.
Below are upcoming comment deadlines for previously issued interim final rules on PPP:
- 85 FR 20811 provides formal guidance on implementation for borrowers and lenders regarding eligibility, use of PPP loans, loan forgiveness, and other terms and conditions. Comments are due May 15, 2020 (WHG summary).
- 85 FR 20817 provides additional guidance on how affiliates will be considered together for the purposes of determining eligibility. See SBA’s fact sheet on four tests for affiliation. Comments are due May 15, 2020.
- 85 FR 21747 provides additional guidance regarding eligibility for individuals with self-employment income and certain businesses. Comments are due May 20, 2020 (WHG summary).
- 85 FR 23450 provides additional guidance regarding promissory notes, authorizations, affiliation, and eligibility. Comments are due May 28, 2020 (WHG summary).