PPP Loan Forgiveness - Definition of ""Owner-Employees" - Spidell

PPP Loan Forgiveness – Definition of “”Owner-Employees”

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Message Board PPP Loan Forgiveness – Definition of “”Owner-Employees”

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    • #250180
      Dora Cheng

      In the Interim Final Rule issued on May 22, 2020 [Docket # SBA-2020-0032] – Section 3(c):

      “Are there caps on the amount of loan forgiveness available for [owner-employee] and ….?’

      Presumably this would apply to C-Corp shareholder who is an employee of the C-Corp/Borrower of PPP Loan.

      Is there a definition of [“owner-employee”] for the purpose of applying this compensation limitation (the lessor 15.38% of 2019 compensation or $15,385 per individual)?

      In Silicon Valley, many startups has stock owned by its employees. If an employee owns a very small % of the company, what is the threshold to become tainted as “owner-employee”.

      Thx dora


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