To our valued clients:
The US Small Business Administration and Treasury recently issued an interim final rule clarifying Paycheck Protection Program forgiveness issues surrounding owner-employee compensation and the eligibility of rent related non-payroll costs.
The guidance states that owner-employees with less than a 5% interest in a C or S corporation are exempted from the owner-employee compensation rule for determining the amount of their compensation eligible for loan forgiveness.
Additionally, the rule clarifies that rent or lease payments made to a related party are eligible for loan forgiveness as long as the amount of loan forgiveness requested for those payments do not exceed the amount of mortgage interest owed on the property during the covered period.
For the full text of the interim final rule, click here.
Please contact us at (503) 224-5321 if you would like to discuss how these rules specifically impact your PPP loan and business.
Isler Northwest LLC is a firm of certified public accountants and business advisors based in Portland, Oregon. Our local, regional, and global resources, our expertise, and our emphasis on innovative solutions and continuity create value for our clients. Our service goals at Isler Northwest is to earn our clients trust as their primary business and financial advisors.
1300 SW 5th Avenue
Portland, Oregon 97201