Payment of these fees by the borrower is eligible for loan forgiveness

Payment of these fees by the borrower is eligible for loan forgiveness

  • No: Household expenses for home-based businesses. “When determining the amount of nonpayroll costs that are eligible for loan forgiveness, the borrower may include only the share of covered expenses that were deductible on the borrower’s 2019 tax filings, or if a new business, the borrower’s expected 2020 tax filings,” the Aug. 24 interim final rule states.
  • Sometimes: Rent or lease payments to a related party. According to the Aug. 24 interim final rule – which defines a related party for these purposes as “any ownership in common between the business and the property owner” – these amounts are eligible for forgiveness if:
  • “The amount of loan forgiveness requested for rent or lease payments to a related party is no more than the amount of mortgage interest owed on the property during the Covered Period that is attributable to the space being rented by the business, and
  • “The lease and the mortgage were entered into prior to .”

“PPP loans are intended to help businesses cover certain nonpayroll obligations that are owed to third parties, not payments to a business’s owner that occur because of how the business is structured,” the Aug. 24 interim final rule states. …