Today, the Treasury Department published an interim final rule expanding the time frame seasonal employers can use to calculate maximum loan amounts under the small business Paycheck Protection Program.
Under the PPP, the size of the loan an employer is eligible for is tied to their average payroll. Initially, this was calculated using the average monthly payroll for the 12-week period beginning February 15, 2019, and ending June 30, 2019.
Some seasonal employers, however, have seasons that occur later in the year, such as farms that harvest in the summer.
To address this disparity, a seasonal employer may now use any consecutive 12-week period between May 1, 2019 and September 15, 2019 for determining its maximum loan amount.
Check-in with your lender to determine how this new rule applies to your PPP loan application.
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