Paycheck Protection Program – SBA Clarifies PPP Guidance

Third-Party Payroll Providers Cleared

On June 13, 2023, the U.S. Small Business Administration ("SBA") issued new FAQ 72 ("FAQ 72") to help clarify whether amounts paid by borrowers to third-party payers for the third-party payer's employees to operate the borrower are considered eligible payroll expenses for the purpose of calculating the maximum loan amount under the Paycheck Protection Program ("PPP"). FAQ 72 clarifies FAQ 10 ("FAQ 10") under the PPP, which stated, in part, that "payroll documentation provided by the payroll provider that indicates the amount of wages and payroll taxes reported to the IRS by the payroll provider for the borrower's employees will be considered acceptable PPP loan payroll documentation."