The Small Business Administration has released updated guidance on the Paycheck Protection Program related to payment of fees to third parties as well as health care benefits.
The recently updated FAQ includes two new questions and answers — No. 50 and 51.
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The first question asks: What effect does the payment or nonpayment of fees of an agent or other third party have on SBA's guarantee of a PPP loan or SBA's payment of fees to lenders?
Answer: Such payment or nonpayment is not material to the loan guarantee or fee payments.
More information about such fees can be found in paragraph III.4.c of the initial Paycheck Protection Program interim final rule, the FAQ explains.
As to whether payments required to provide group health care benefits, including insurance premiums, include vision and dental benefits, the SBA said yes. (These payments are not counted under the program's per-employee salary expense cap of $100,000 a year.)
The deadline to apply for a Paycheck Protection Program loan expired Aug. 8. The original deadline was June 30.
PPP loans cannot resume until another stimulus deal is struck. As of mid-July, the PPP contained $130 billion in available funds.
The GOP's HEALS Act includes a Paycheck Protection Program Second Draw Loans option via the Continuing Small Business Recovery and Paycheck Protection Program Act.
Treasury Secretary Steven Mnuchin said in mid-July that any new stimulus bill should include extending the PPP, and that new loans should go to businesses facing "significant revenue declines."
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Melanie Waddell
Melanie is senior editor and Washington bureau chief of ThinkAdvisor. Her ThinkAdvisor coverage zeros in on how politics, policy, legislation and regulations affect the investment advisory space. Melanie’s coverage has been cited in various lawmakers’ reports, letters and bills, and in the Labor Department’s fiduciary rule in 2024. In 2019, Melanie received an Honorable Mention, Range of Work by a Single Author award from @Folio. Melanie joined Investment Advisor magazine as New York bureau chief in 2000. She has been a columnist since 2002. She started her career in Washington in 1994, covering financial issues at American Banker. Since 1997, Melanie has been covering investment-related issues, holding senior editorial positions at American Banker publications in both Washington and New York. Briefly, she was content chief for Internet Capital Group’s EFinancialWorld in New York and wrote freelance articles for Institutional Investor. Melanie holds a bachelor’s degree in English from Towson University. She interned at The Baltimore Sun and its suburban edition.
