Late on Monday, April 6, 2020, the U.S. Treasury Department issued additional guidance on some common questions relating to the Paycheck Protection Program. Among other things, the Treasury has clarified the basis for calculating the $100,000 cap on “payroll costs” and number of employees for purposes of the employee-based size standard, and has offered guidance on how minority equity holders such as venture capital funds may “waive” controls that otherwise could give rise to employee aggregation issues based on affiliation rules. To the extent the new guidance changes the calculations reflected in a previously filed loan application that has not yet processed, the new guidance suggests you should be able to revise your application .
The full text of the guidance in a user-friendly question-and-answer format is available here and we encourage you to read it and contact us with any questions. As before, given the limited funds appropriated for the PPP program, companies interested in applying for a PPP loan are encouraged to get their applications in as soon as possible.