PPP Guidance on Determining Loan AmountsJanuary 19, 2021 Alert
On January 19, 2021, the Treasury and SBA released two guidance documents about calculating loan amounts for First Draw and Second Draw PPP loans.
New Agency Guidance
The new guidance documents assist borrowers with how to calculate the maximum loan amounts in different situations for both First Draw PPP loans and 2nd Draw PPP loans. The guidance also details what documentation borrowers should expect to provide to support their calculations.
The guidance can be accessed through the following links and they are also available on the Treasury and SBA websites:
- How to Calculate First Draw PPP Loan Amounts and What Documentation to Provide - by business type
- Second Draw PPP Loans: How to Calculate Revenue Reduction and Maximum Loan Amounts Including What Documentation to Provide
The guidance can be relied on as the SBA’s interpretation of the CARES Act, the Economic Aid Act, and the Paycheck Protection Program Interim Final Rules. Paylocity’s PPP report can help clients calculate their payroll costs. For more information about Paylocity’s PPP resources contact your Account Representative.
Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.