MPL General Counsel Corner – Another day, a few more updates
Today’s update is short and sweet, which means that karma is in play and something major will be released. Let’s hope the Treasury Department provides some PPP loan forgiveness guidance soon, which is rumored to be out at the end of this month. Speaking of that, Trout CPA has a webinar today at 10am which addresses this very topic.
The Dept. of Treasury did provide three updates yesterday related to the PPP loans. See below for the links to the documents and brief overviews:
- PPP FAQ, Question 37: Essentially, this is a rehash of FAQ 31. If you are owned by a private company and that private company has adequate sources of liquidity, then you may not be eligible for the PPP loan.
- Updated Interim Final Rule – Seasonal Employers: The update provided guidance on who the eligible lenders would be for seasonal employers. If a lender can do all other PPP loans, they can do them for Seasonal Employers.
- Interim Final Rule on Disbursements: This update provides some new guidance for lenders. A few things to know:
- A borrower cannot take multiple draws from a PPP loan. The disbursement must be one-time and in full.
- A loan is considered approved once an SBA loan number is received by the lender. A lender has 10 calendar days to disburse the loan.
- For loans that have not been fully disbursed prior to this rule, the lender has 10 days to complete the full disbursement starting as of April 28, 2020. The 8-week forgiveness period begins upon the first disbursement.
- Loans which have not been disbursed because the borrower has not submitted the required documentation within 20 days of loan approval shall be cancelled by the lender. (This seems to contradict the 10-day disbursement rule in 3b above; any guidance from my accountant friends would be greatly appreciated)
- When disbursing loans, lenders must send any amount of loan proceeds designated for the refinance of an EIDL loan directly to the SBA and not to the borrower.
Here are some other things that may be important or relevant for you:
- How do I handle the accounting for changes in leases if I am the lessor? FASB recently proved a helpful Q&A for lessors related to the accounting of deferrals of lease payments or modifications of leases. I know the document is a bit technical, but if you are a lessor, it may be important to understand and chat with your Accountant or internal finance lead about this topic.
- Upcoming Webinars and Helpful Resources
- Trout CPA: Making Sense of the Paycheck Protection Program Loan Forgiveness (4/29 @ 10am)
- Stambaugh Ness Town Hall (Tuesdays 2-4pm)
- US Chamber of Commerce Webinars
- NFIB Coronavirus Small Business Update (4/29 @ 12pm)
- RKL Weekly Webinar Series (Every Friday). To be added to their invite list, please click here.
Please see all of our prior updates at the this link.