SBA Addresses Questions Frequently Asked About the Paycheck Protection Program
On April 7, 2020, the Small Business Administration released additional guidance concerning the Paycheck Protection Program (PPP) to address concerns commonly raised by applicant companies and lenders. The six-page document is full of information which many NFSA companies will likely find helpful in deciding whether to apply for the PPP.
Probably the most helpful information in the SBA document concerns eligibility. Before the PPP’s effective date, NFSA interpreted this to mean that companies who met either (1) the less than 500 employee threshold, or (2) the SBA’s industry-specific size standards were eligible for assistance under the program. Despite some conflicting information provided by other sources, NFSA would like to reassure members that meeting either standard qualifies a company to apply for the PPP.
The SBA also provides guidance on payroll calculations, salary exclusions, sick leave coverage, and companies who utilize Professional Employer Organizations to process payroll and applicable taxes.
We know these changes and updates are coming fast, but we assure you that Team NFSA is monitoring and sharing the latest as soon as we get the vetted and confirmed information. We are all in this together, and we encourage you to stay in touch and let us know if you have specific needs regarding this information.