FF&F News & Events

Key Takeaways from SBA’s Frequently Asked Questions Related to SBA Loans Under the Paycheck Protection Program

All information is based on our current understanding as of the date that it is posted. Please keep in mind this information is changing rapidly – it can and likely will change. Some information becomes outdated the same date it posted. Although we will monitor and update this page as new information becomes available, please do not rely solely on this page. We encourage you to contact your FF&F advisor for the latest information.


On April 6, 2020, the Small Business Administration (SBA), in consultation with the Department of the Treasury, updated some frequently asked questions related to the Paycheck Protection Program (PPP). Click here for their updated FAQs.

The following are some key takeaways for borrowers:

  1. The exclusion for payroll costs in excess of an annual salary of $100,000 does not include non-cash benefits such as employer contributions to defined benefit or defined contribution retirement plans, payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums, and payment of state and local taxes assessed on compensation of employees.
  2. Borrowers that use a Professional Employer Organization (PEO) to process payroll and report payroll taxes are eligible for PPP and would provide payroll documentation from the PEO that indicates the amount of wages and payroll taxes reported to the IRS by the payroll provider for the borrower’s employees.
  3. Borrowers can calculate their aggregate payroll costs using data either from the previous 12 months or from calendar year 2019.
  4. Any amounts paid to an independent contractor or sole proprietor should be excluded from payroll costs.
  5. Payroll costs are not reduced by taxes imposed on an employee and required to be withheld by the employer; but payroll costs do not include the employer’s share of federal payroll tax.
  6. As these rules continue to be updated, borrowers whose previously-submitted loan applications have not yet been processed may revise their applications based on clarifications.