SBA Issues New PPP Rules for Owner-Employees and Related Party Rents -

The Small Business Administration ("SBA") recently issued a new interim final rule clarifying whether paycheck protection program ("PPP") loan proceeds may be used for certain payroll and non-payroll costs and remain eligible for forgiveness, notwithstanding earlier guidance or uncertainty. Generally, PPP loans may be forgiven so long as used for a borrower's payroll costs (generally, all compensation, capped at $100,000 on an annual basis, plus benefits) and certain mortgage interest, rent and utility expenses.