The Paycheck Protection Program (“PPP”), as enacted under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, provides federally-guaranteed loans up to a maximum amount of $10 million to qualified businesses, which can be fully forgivable, to encourage businesses to retain employees through the COVID-19 crisis by assisting in the payment of certain operational costs.
The below Computational Framework equips PPP applicants with detailed guidance on calculating (i) the total number of employees for eligibility, (ii) the maximum loan amount available and (iii) the eligible forgiveness amount.
The Computational Framework was prepared in accordance with our analysis of the (i) CARES Act, (ii) First Interim Final Rule issued by the U.S. Small Business Administration (“SBA”) on April 2, 2020, (iii) Second Interim Final Rule issued by the SBA on April 4, 2020, (iv) Applicable Affiliation Rules fact sheet that was issued by the U.S. Department of Treasury (“Treasury”) on April 4, 2020, (v) Third Interim Final Rule issued by the SBA on April 14, 2020, and (vi) the Frequently Asked Questions fact sheet (“FAQ”) issued by the Treasury, which was last updated on April 17, 2020 at the time of this publication.
Click for a PDF of the full article: Computational Framework for Determining Number of Employees for Eligibility, Qualifying Loan Amount and Forgiveness for a PPP Loan
*This alert is provided for information purposes only and does not constitute legal advice and is not intended to form an attorney client relationship. Please contact your Sheppard Mullin attorney contact for additional information.*