April 30, 2020 Editor’s Note: Thank you for viewing this resource about the Paycheck Protection Program (PPP). This was a cornerstone for many organizations during the COVID-19 pandemic, but it’s important to stay current on the latest financial support options. Like PPP, the Employee Retention Credit (ERC) can be leveraged to bring your business significant financial relief. We invite you to dive into our ERC content here. Need professional advice on maximizing your ERC benefits? Learn more about our Employee Retention Credit consulting services and then contact us. When Does the 8 Week Period Begin? Interim Final Rule Announced for Disbursement Requirements for the Paycheck Protection Program On April 28, 2020, the Interim Final Rule on Disbursements clarified the start date of the eight-week period for the loan issued from the Paycheck Protection Program (PPP). It also addressed whether a recipient could take multiple draws on a PPP loan and thereby delay the start of the eight-week covered period. (The complete final ruling released by the U. S. Small Business Administration can be found by clicking here.) HOW THIS MAY IMPACT YOU According to the U.S. Small Business Administration (SBA) the lender must make a one-time full disbursement of the PPP loan within 10 calendar days of loan approval. The loan is considered approved when the loan is assigned a loan number by SBA. For loans that were partially disbursed prior to the posting of the interim rule (4/28/20), transition rules apply: The ten calendar-day period described above begins on April 28, 2020 The eight-week covered period began on the date of the first disbursement It goes on to say that lenders are not responsible for a borrower’s delay in signing loan documents and after a 20 day period the loan will be canceled. Lenders are required to report to SBA when the loans are fully disbursed via SBA Form 1502. KatzAbosch will continue to provide additional in-depth updates on this matter. In the meantime, if you have questions or concerns on how any of the new provisions or available funding may impact your situation, please contact us. About KatzAbosch: Founded in 1969, KatzAbosch is one of the largest CPA and business consulting services in the Mid-Atlantic region. As an accounting firm, our mission is to provide the highest quality accounting, tax, financial and management consulting services to our regional clients. We understand the needs and challenges of our clients and we have made it our obligation to create, grow and protect asset value. KatzAbosch is consistently named a Best Accounting Firm to Work For in Accounting Today and has been named a Top 200 Accounting Firms in the Nation by Inside Public Accounting. Our firm is also ranked among the Top 15 Largest Accounting Firms in the Baltimore Area by the Baltimore Business Journal and a Top Workplace four times by The Baltimore Sun.