“Going for a New PPP Loan? SBA Revises Rules on Employee and Owner Salaries, Bonuses,” Washington Business Journal
On January 14, 2021, Washington Business Journal quoted Partner Christina Moore in an article discussing the Small Business Administration's Paycheck Protection Program and its new rules on how much small businesses can pay their employees and still get full forgiveness.
While small businesses are still limited to $100,000 salary caps, annualized over the period during which the business spends the PPP loan proceeds, the covered period is now any number of weeks between eight and 24, which means every small business will have to carefully watch its spending.
According to Christina Moore, small-business owners need to keep those caps in mind as they work out how to spend any new PPP loan proceeds. "They should be thinking about owner compensation caps just as they did in the first round of PPP loans," Moore said.
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