SBA and US Treasury Paycheck Protection Program guidance and rules do not match actual forms lenders are using
Paycheck Protection Program form has not been updated to reflect changes made to the Interim Final Guidance as posted in the FAQs and reflected in the borrowers form section certifications on page two 2 of the Paycheck Protection Program Borrower App
image

By Murray Wennerlund published 4-15-2020 updated 5-14-2022

Advocacy Task: Call, post, email your Congressional Representatives.

Issue: Paycheck Protection Program form has not been updated to reflect changes made to the Interim Final Guidance as posted in the FAQ's and reflected in the borrowers form section certifications on page two (2) of the Paycheck Protection Program Borrower Application Form published and linked in my email.

Where it is said under category heading:

  • CERTIFICATIONS

Requires the borrower to initial

  • The Applicant was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors, as reported on Form(s) 1099-MISC.

This should be amended to strike "or paid independent contractors,as reported on Form(s) 1099-MISC" and replaced with, "or paid self as an independent contractor, self-employed person by earnings draw and reflected in IRS filings as profit or loss."

The form does not provide remedy for the following rule change:

  • 15. Question: Should payments that an eligible borrower made to an independent contractor or sole proprietor be included in calculations of the eligible borrower&rsquos payroll costs?

  • Answer: No. Any amounts that an eligible borrower has paid to an independent contractor or sole proprietor should be excluded from the eligible business&rsquos payroll costs. However, an independent contractor or sole proprietor will itself be eligible for a loan under the PPP, if it satisfies the applicable requirements.

Question 15 implies that the independent contractor will be filing their own PPP application but in the Self Certification section of the Borrowers Application Form it does not provide self certification of an independent contractor method of payroll which would be by year end earnings draw.

Would you please address the SBA and US Treasury and correct this issue so that independent contractors using year end earnings draw as their payroll method to be compliant for loan forgiveness under the self certification section of the application.

Thank you,

Resource Links:



How to Fail Your Municipality's Residential Slab Pre-Pour Inspection.

By Murray Wennerlund

Here are some key points and the most common reasons why residential slab pre-pour fail, according to municipal inspectors:

Why Hiring a Licensed Contractor in Louisiana May Actually Harm Homeowners More Than Help.

By Murray Wennerlund

You've most likely heard all the hype: hire a licensed contractor and verify their license with the Louisiana State Licensing Board for Contractors, LSLBC for short. The state says this protects you from unlicensed contractors.

Ensuring Quality: Navigating Contractor Selection and Avoiding Labor Brokers.

By Murray Wennerlund

Learn effective methods for selecting quality contractors and avoiding labor brokers in home construction. Manage home repair and reconstruction projects efficiently, ensuring skilled trades and maintaining oversight for high-quality results.