SBA and US Treasury Paycheck Protection Program guidance and rules do not match actual forms lenders are using

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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

By Murray Wennerlund published 4-15-2020 updated 1-11-2022 2 min. 50 seconds read viewed 573 times.


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,

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