07 May SBA Approves the Pastoral Housing Allowance for PPP Loans
After weeks of uncertainty surrounding the Minister’s Housing Allowance for Paycheck Protection Program loans, the U.S. Small Business Administration (SBA) states in a Frequently Asked Questions report that it has approved the inclusion of the minister’s housing allowance in payroll costs for purposes of applying for a Paycheck Protection Program (PPP) loan and seeking forgiveness of that loan. This concern is addressed in question 32 of the report and reads:
32. Question: Does the cost of a housing stipend or allowance provided to an employee as part of compensation count toward payroll costs?
Answer: Yes. Payroll costs includes all cash compensation paid to employees, subject to the $100,000 annual compensation per employee limitation.
The Small Business Administration (SBA) updates the Frequently Asked Questions (FAQs) report on a periodic basis in an effort to provide additional guidance to address borrower and lender questions concerning the implementation of the Paycheck Protection Program (PPP).
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