The PPP rules are still changing,

No Surprise there!

During the past month, the SBA issued a new set of FAQs and a new interim final rule. Which in combination create the following good news for the PPP:

More forgiveness. The $20,833 cap on corporate owner-employee compensation applies to cash compensation only. It’s not an overall compensation limit as stated previously. Under this new rule, the owner-employee can add retirement benefits on top of the cash compensation, creating a new higher cap. (Yay!)
Escape owner status. You are not an owner-employee if you have less than a 5 percent ownership stake in a C or an S corporation. Therefore, the cap on forgiveness for this newly defined non-owner-employee is not $20,833 but rather $46,154. (Another Win!)

The new rules override prior guidance. Having significance for PPP loan forgiveness today. And perhaps for obtaining additional loan monies retroactively

The good news is that the corporate retirement contributions on behalf of owner-employees now count for additional forgiveness. If the owner-employee has cash compensation greater than $100,000. With the C corporation, the new guidance allows health insurance for the owner-employee.

If there are more updates, which there probably will be, we will keep you posted.

For more information, this article and many more to help your business grow on our website cdprofessionalservices.com