SBA Clarifies PPP Interpretations

Since AED’s last webinar on April 13 about the CARES Act with our partners at K•Coe Isom, the Small Business Administration has offered some interpretations that may differ from what was offered during the presentation.

Specifically, K•Coe Isom has informed AED that the SBA has clarified the following:

  1. Treatment of Commissions. Commissions are now included in gross payroll and are subject to the $100k limit threshold. Unless new funds are made available this won’t matter for loan applications, however, it could affect the amount of the forgivable part of a PPP loan received if the commissions had not been included in the limitation (i.e. the loan would most likely be higher than the actual payroll incurred with the limitation).
  2. Forgivable Interest Expense. The law has not changed on interest expense being part of the forgivable funds, but the SBA, so far is sticking to their interpretation that it’s limited to mortgage interest.  SBA has always said the funds could be used for other interest, but have contended that only mortgage interest was forgivable.


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