Treatment of Separate Contractors Beneath the Salary Safety Program

Under the Paycheck Security System (“PPP”), getting qualifications, amount borrowed, and you will forgiveness calculations, exactly how is to companies beat “separate contractors”?

New Coronavirus Services, Save, and you will Economic Security Operate (“CARES”) energized the little Providers Management (“SBA”) to guarantee specific $349 million lowest-attention, forgivable PPP financing. On nights times of , this new SBA granted their Interim Last Laws and regulations (“Interim Legislation”) to administer new PPP. Whilst Meantime Regulations supply the earliest round from promised information from the SBA, nevertheless they keep in mind that the newest SBA intends to offer further guidance regarding several aspects of PPP financing administration.

The Interim Laws considering several unexpected situations. For example, brand new PPP money is paid to eligible companies on the a great first-come-basic served foundation, and you may a good PPP debtor can only just located that financing. This shock contributed to scramble to possess PPP individuals and you will lenders to get their applications inside SBA webpage. Likewise, the rate would-be 1% and certainly will enjoys a maturity date of a couple (2) ages. Continue Reading