Great news for partnerships or self-employed individuals that submitted their PPP loan applications before April 14th:

• Partnerships that have already submitted PPP applications without including partner self-employment income likely did not receive the maximum amount of PPP loans they were eligible for. The interim rule issued on May 13, 2020 allows all PPP lenders to increase existing PPP loans to partnerships or to seasonal employers to include amounts to cover partner compensation or to permit a seasonal employer to calculate its maximum loan amount.

• Although the interim final rule on disbursements posted on April 28, 2020 requires PPP loans to be made in a single disbursement, if a PPP loan is increased due to the above revised rules, this interim final rule authorizes the lender to make an additional disbursement of the increased loan proceeds prior to submission of the initial SBA Form 1502 that includes the loan.

Prior to yesterday’s guidance, borrowers had to certify the following: “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”

Per yesterday’s guidance, for PPP loans under $2 million:

• Treasury states “Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.”