[Hidden-tech] Squirly laws in PPP Loan Forgiveness

[Rob Laporte]

Hi All,

It's hugely complicated, and I expect to resolve it via my firm's CPA soon, but meanwhile I wonder if this recap to my CPA resonates with any others of you trying to battle the effects of banking lobbyists working to reduce US-wide PPP loan forgiveness:

When I applied to the loan on 4/9, calcuations were based on payroll, no S-Corp [or C-Corp] owner distinction. So I applied for the amount I did based on that. The later rule change regarding S-corp owners seems wrong--it changes the terms of the loan after making a business decision to get the loan at all--hence my thinking it's best to invoke:


“Borrowers and lenders may rely on the guidance provided in this document as SBA’s interpretation of the CARES Act and of the Paycheck Protection Program Interim Final Rules (“PPP Interim Final Rules”) (link). The U.S. government will not challenge lender PPP actions that conform to this guidance, and to the PPP Interim Final Rules and any subsequent rulemaking in effect at the time.” (

https://www.sba.gov/sites/default/files/2020-04/Paycheck-Protection-Program-Frequently-Asked-Questions_04%2024%2020.pdf 4/24/20)

Also, I applied based on rent paid, regardless of later rule changes negating forgiveness for rent paid to the business owner or to a relative of the owner.

But if other ways to slice this will work for getting all forgiveness, I'd do that, being cognizant of the National Law Reivew's warning that choosing any rules after one's PPP loan application date (4/9 for me) could mean "that to be eligible for this safe harbor, borrowers may need to keep all full time equivalent employees employed even after the covered period ends" up to 12/31/2020.

I coud write a small book on the many ways that the ever-changing PPP rules/laws together with PR lure small businesses into taking the bait on the 24-week option and/or delying forgiveness application, which reduces forgiveness and increases debt. And forget about the PR about all loans under 150G maybe being forgiven automatically--it spurs more delays in forgiveness applications, which will benefit the big banks that buy the books of PPP loans from small banks and then change the rules (the CARES Act allows that) for profit and perhaps collateralize some of the debt into CLOs to sell to investors.

But to keep focus, I wonder if anyone has insight on the legality of in fact invoking the laws that were in effect when one applied to the original PPP loan, so as to obviate all later rules.


Take Care,


Rob Laporte

Chief Business Development Officer | Founder | Chairman

DISC, Inc. - Making Websites Make Money

413-584-6500

rob at 2disc.com<mailto:rob at 2disc.com> | LinkedIn<https://www.linkedin.com/in/2disc/> | 2DISC.com<https://www.2disc.com>


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