Tax Law Insights

The Small Business Administration (“SBA”) recently issued a new interim final rule clarifying whether paycheck protection program (“PPP”) loan proceeds may be used for certain payroll and nonpayroll costs and remain eligible for forgiveness, notwithstanding earlier guidance or uncertainty.  Generally, PPP loans may be forgiven so long as used for a borrower’s payroll costs (generally, all compensation, capped at $100,000 on an annual basis, plus benefits) and certain mortgage interest, rent and utility expenses. Various guidance in the wake of the implementation ...