Two updates this morning on the SBA’s important and potentially very helpful Paycheck Protection Program for small businesses:
- The SBA’s Final Interim Rule issued Thursday night has this guidance on the difficult question of 1099 contractors:
Q: Do independent contractors count as employees for purposes of PPP loan calculations?
A. No, independent contractors have the ability to apply for a PPP loan on their own so they do not count for purposes of a borrower’s PPP loan calculation
2. There have been a series of doom and gloom articles about the SBA’s rollout and large Banks’ reaction to that, such as this article from Politico, and this one from Forbes. We counsel patience. The government is rolling out an unprecedented amount of money for small businesses in the coming 30-60 days ad we suspect they will fully fund that generous program now that they have started it.
Finally, Rebecca Heimlich (513.797.6227) from this office is devoting her practice for the coming weeks to serving clients on the PPP and EIDL programs. If she can be of assistance, please contact her directly.