Image hero

Frequently Asked Questions – August 4, 2020

PPP - Loan Forgiveness

We’re proud to partner with NBT Bank in providing informative, timely updates on the ever-changing PPP Forgiveness regulations. Please review our webinars, EZ application update details and more to help support your business in this forgiveness process. To learn more about NBT Bank, visit: NBT Bank – Business.


The Small Business Administration (SBA), in consultation with the Department of the Treasury issued a new set of Frequency Asked Questions (FAQs) on PPP Loan Forgiveness on August 4, 2020.  Many of the FAQs confirmed our previous understanding of the forgiveness program but also provided additional clarification on items that were open to interpretation.  See below for our summary of the significant items.

Business Owner Limitations

The first clarification was on the forgiveness limits for owner-employees and what can be included as compensation.  Owner-employees and self-employed individuals’ payroll compensation is capped at $20,833 per individual in total across all businesses in which they have an ownership stake.  For borrowers that received a PPP loan before June 5, 2020 and elect to use an eight-week Covered Period, this cap is $15,385.

The following non-cash compensation can be used to exceed the owner compensation caps provided above.  This varies by entity structure as follows:


  • State & local taxes, no cap
  • Employer retirement contribution (capped @ 2.5/12 of 2019 amounts)
  • Employer health insurance


  • State & local taxes included, no cap
  • Employer retirement contribution (capped @ 2.5/12 of 2019 amounts)

General Partners and Schedule C & F filers – No non-cash compensation will be considered.

Transportation Expenses

The second clarification in the FAQs was the definition of ‘Transportation Expenses’ as a utility expense.  The SBA defined eligible transportation expenses as:

A service for the distribution of transportation refers to transportation utility fees assessed by state and local governments. 

 Transportation Expense

Transportation utility fees are a financing mechanism that treats the transportation system like a utility in which residents and businesses pay fees based on their use of the transportation system rather than taxes based on the value of property they occupy.  They have been used successfully in smaller cities in Washington, Idaho, Utah, Colorado, Texas, Missouri, and Florida. The fees are used primarily by local governments to fund roadway maintenance. They are also known as street maintenance fees, road use fees, street utility fees, and pavement maintenance utility fees.

 To read the full 23 FAQs document issued by the SBA, click here.