SBA CARES Act Clarification and FAQ
Late on April 2, the SBA released its interim final rule on the SBA 7(a) Paycheck Protection Program loans, created by the CARES Act. This rule clarifies one of the biggest outstanding questions on the program for NAR members - whether or not independent contractors should be included in an employer's employee headcount, and payments to them included in their average monthly payroll costs calculations. Though there is some contradictory language in the rule, it explicitly states that because independent contractors have the ability to apply for their own paycheck protection program loan, they do NOT count for the purposes of a borrower's PPP calculation.
Small businesses and sole proprietors can apply for the loans beginning today, April 3; independent contractors and the self-employed can apply beginning next Friday, April 10. The applications should go directly through an SBA lender. You can find out more about this loan - eligibility requirements, what it can be used for, forgiveness requirements, plus links to the application and how to find an SBA lender - here on NAR's FAQ document, which is being updated to reflect the latest information from the SBA.