SBA / Treasury FAQ – 41. Can a seasonal employer that received a First Draw PPP Loan in 2020...make all the required certifications on the Borrower Application Form?

Compliance > CARES Act
Q:   Can a seasonal employer that received a First Draw PPP Loan in 2020 and elected to use a 12-week period between May 1, 2019 and September 15, 2019 to calculate its maximum PPP loan amount under the interim final rule issued by Treasury on April 27, 2020, make all the required certifications on the Borrower Application Form?
 
A:  Yes. The 2020 First Draw PPP Loan Borrower Application Form required applicants to certify that “The Applicant is eligible to receive a loan under the rules in effect at the time this application is submitted that have been issued by the Small Business Administration (SBA) implementing the Paycheck Protection Program.” On April 27, 2020, Treasury issued an interim final rule allowing seasonal borrowers to use an alternative base period for purposes of calculating the loan amount for which they are eligible under the PPP. For First Draw PPP Loans made before December 27, 2020, an applicant that was otherwise in compliance with applicable SBA requirements, and that complied with Treasury’s interim final rule on seasonal workers, will be deemed eligible for a PPP loan under SBA rules. Instead of following the instructions on page 3 of the Borrower Application Form (April 2, 2020 version) for the time period for calculating average monthly payroll for seasonal businesses, an applicant may have elected to use the time period in Treasury’s interim final rule on seasonal workers.
 
 

This Q&A was based on information contained in the Treasury Department’s March 12, 2021, version of “Paycheck Protection Program Loans, Frequently Asked Questions,” which is updated from time to time.  This CARES Act / SBA / PPP related issuance may be found here:  https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf

 

Add Feedback