The SBA recently issued Paycheck Protection Program Interim Final Rule – Treatment of Owners and Forgiveness of Certain Nonpayroll Costs. This PPP interim final rule supplements the previously posted interim final rules by providing additional guidance on treatment of owners and forgiveness of certain nonpayroll costs. Here are several key points stipulated by the Rule:
- Less than 5% owners of C or S Corporations are not subject to owner compensation limits
Nonpayroll-amounts paid and attributable to space subleased to others aren’t eligible for forgiveness - Nonpayroll related party rent-limited to the mortgage interest of the related party for the space being rented and must submit the related party’s documentation of mortgage interest when applying for forgiveness
- Nonpayroll-mortgage interest paid to a related party is not eligible for forgiveness
- Related party is defined as any common ownership
If you have have questions regarding this or PPP Loan forgiveness, the team at ARB is here to help. Contact us today.
by Holly Ferguson, CPA
