Raich Ende Malter and Co. LLP issued the following announcement on Aug. 25
New guidance has been issued by the United States Small Business Administration (SBA). These are the key points for PPP loan recipients:
- Owner-employees with less than a 5% ownership stake in a C- or S-Corporation are not subject to the owner-employee compensation rule.
- The amount of loan forgiveness requested for non-payroll costs may not include any amount attributable to the business operation of a tenant or sub-tenant of the PPP borrower.
- Rent payments to a related party are eligible for loan forgiveness as long as the amount does not exceed the amount of the mortgage interest on the property during the Covered Period and the lease and the mortgage were entered into prior to February 15, 2020.
This is an ongoing series of updates provided to help businesses attain financial aid to offset loss of revenue due to the COVID-19 pandemic. Previous articles in this series can be found here.
Original source can be found here.
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