Quick Answer: What Is The Safe Harbor Rule For PPP?

What is the PPP safe harbor?

Under the new safe harbor, if a borrower, together with its affiliates (to the extent required under the interim final rule on affiliates), received PPP loans with an original principal amount of less than $2 million, the borrower “will be deemed to have made the required certification concerning the necessity of the ….

What is the PPP Safe Harbor deadline?

The SBA originally provided a safe harbor deadline of May 7, 2020 for PPP applicants who lacked an adequate basis for the certification to return their loans. Two days before the deadline, the SBA extended this deadline to May 14, 2020, while promising additional guidance on how the SBA “will review the certification.”

How do you calculate safe harbor FTE reduction?

If you fail both Safe Harbor 1 and 2, you will be assessed an FTE reduction penalty which is calculated as your average FTE from your chosen covered period divided by the average FTE from the chosen reference period.

What are the rules for the PPP?

The loan amount is based on your average monthly payroll cost for 2019. You can receive 2.5 times that amount, to help cover eight weeks of payroll. The funds from the PPP can be used for the following purposes: Payroll—salary, wage, vacation, parental, family, medical, or sick leave, health benefits.

How many weeks is PPP good for?

If 24 weeks, it begins on the date the loan proceeds are disbursed and ends 24 weeks (168 days) from that date. Alternative Period – Borrowers with a bi-weekly or more frequent payroll schedule may elect the Alternative Period.

Is the PPP being extended?

Y.), and Senators Jeanne Shaheen (D-N. H), Jacky Rosen (D-Nev.), and Susan Collins (R-Maine) successfully passed legislation to extend the U.S. Small Business Administration’s (SBA’s) authority to approve Paycheck Protection Program (PPP) loans through August 8, 2020.

What is the safe harbor date?

December 8, 2020: The “Safe Harbor” Deadline in the counting of the electoral votes. This date, known as the “Safe Harbor” deadline, falls on December 8 in 2020. The governor of any state where there was a contest, and in which the contest was decided according to established state procedures, is required (3 U.S.C.

Is PPP forgiveness extended?

The Paycheck Protection Program Flexibility Act made some significant changes to PPP loans. One of the biggest changes was to the eight-week forgiveness period. If you were assigned a PPP loan number on or before June 5, 2020, you now have the option of taking 24 weeks to spend the funds instead of eight weeks.

What is included in PPP forgiveness?

Payroll costs incurred but not paid during the last pay period of the selected period are eligible for forgiveness if paid on or before the next regular payroll date. Payroll costs include all forms of cash compensation including tips, commissions, bonuses, and hazard pay.

What payroll costs are included in PPP forgiveness?

Payroll Costs: ** Under the PPP, payroll costs generally include: Employee gross pay, including salary, wages, commissions, bonuses, and tips, capped at the annualized value of $100,000 for the length of the applicable Covered Period or Alternative Payroll Covered Period.

How long do PPP loans last?

Loan Details PPP loans have an interest rate of 1%. Loans issued prior to June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years. Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower’s loan forgiveness amount to the lender.

What are payroll fees for PPP forgiveness?

Answer: Payroll costs include all forms of cash compensation paid to employees, including tips, commissions, bonuses, and hazard pay. Note that forgivable cash compensation per employee is limited to $100,000 on an annualized basis.