PPP Forgivable Loan Program: An Update from the SBA
April 3, 2020
The SBA has published an interim final rule that describes the Paycheck Protection Program. This includes a useful explanation of various elements of the Program. The rule can be found online: https://home.treasury.gov/system/files/136/PPP--IFRN FINAL.pdf. Starting at page 8 are several examples of how to calculate average monthly payroll – a key number that (when multiplied by 2.5) is a dollar amount that can be borrowed under the Program.
As noted in the rule, if your business received a recent Economic Injury Disaster Loan (EIDL) from Treasury, you can add that amount to your payroll-derived total.
