SBA Issues Additional Guidance on Paycheck Protection Program

The U.S. Small Business Administration released additional guidance on the Paycheck Protection Program (PPP) last night, making significant modifications to the loan calculation and terms for businesses seeking relief from COVID-19 losses.

The major changes include:

  • Independent contractor payments will not be included in payroll costs when calculating the size of a business’s PPP loan.
  • Interest rates on PPP loans will be 1.0%. (Interest will not be applied if a business qualifies for loan forgiveness under the PPP.)
  • A new PPP application form was released and replaces the form issued by the SBA earlier this week.

Some banks have indicated that they will not be ready to begin accepting applications until Monday. Grassi’s Emergency Loan Consulting team is monitoring these developments closely and will keep you updated as more guidance is issued.

Please contact your Grassi Advisor, emergency loan consultant or our Crisis Response & Recovery Hotline at 212.223.6216 or for more information.

Jeff Agranoff Jeff Agranoff is the Chief Human Resources Officer and a Human Resources Consulting Principal at Grassi. With over 18 years of experience working in public accounting firms, Jeff specializes in heading human resource departments, providing outsourced human resource solutions to clients and growing middle market businesses in various industries. Prior to joining Grassi, Jeff was the Chief Operating Officer and a Human Resources Principal... Read full bio

Lou Pizzileo An accounting and advisory Partner at Grassi, Lou Pizzileo plays a key role serving the firm’s clients in the manufacturing and distribution, technology and specialty finance practices. Entrepreneurial minded, Lou recently led the firm’s efforts in assisting companies with capturing available stimulus provided by the CARES Act, including the Paycheck Protection Program. He also recently created and leads the firm’s IT accounting practice. Lou... Read full bio