New PPP IFR – Treatment of Owners and Forgiveness of Certain Nonpayroll Costs

The SBA recently issued a new PPP Interim Final Rule (“IFR”) regarding “Treatment of Owners and Forgiveness of Certain Nonpayroll Costs.” This IFR clarifies that owner-employees with less than 5% ownership in a C or S corporation are not subject to the owner-employee compensation rule. In addition, amounts attributable to the operation of a tenant are not eligible for forgiveness, but rent paid to a related party is forgivable if certain requirements are met. Please click here to review these important PPP loan updates.