SBA Issues New Rule for PPP Loans to Seasonal Employers

On April 27, 2020, the U.S. Small Business Administration (“SBA”) posted a fifth Interim Final Rule on Additional Criterion for Seasonal Employees. This Interim Final Rule addresses the needs of certain potential borrowers that are seasonal employers by allowing seasonal employers to use an alternative base period for purposes of calculating the loan amount for which they are eligible under the Paycheck Protection Program (“PPP”). Our summary below focuses on sections of this Interim Final Rule which supplement previous guidance for borrowers:

  • Section 3 indicates that under section 1102 of the CARES Act, a seasonal employer may determine its maximum loan amount for purposes of the PPP by using the employer’s average total monthly payments for payroll during the 12-week period beginning February 15, 2019, or at the election of the eligible [borrower], the period between March 1, 2020 and June 30, 2019. Under this Interim Final Rule issued pursuant to section 1109 of the Act, a seasonal employer may alternatively elect to determine its maximum loan amount by using the average total monthly payments for payroll during any consecutive 12-week period between May 1, 2019 and September 15, 2019. Without the ability to use an alternative base period, many summer seasonal businesses would be unable to obtain funding on terms commensurate with those available to winter and spring seasonal businesses.
  • Section 4 indicates that if a seasonal business was dormant or not fully operating as of February 15, 2020, it is still eligible for a PPP loan if the seasonal business was in operation for any 8-week period between May 1, 2019 and September 15, 2019.

This Interim Final Rule supplements SBA’s rules for the PPP by establishing an alternative means for calculating the maximum loan amount for seasonal employers. All other terms and conditions in the PPP remain unchanged. All lenders authorized to originate PPP loans may offer the terms under this Interim Final Rule to eligible applicants and borrowers.


For additional information on the Paycheck Protection Program, as well as other Federal, state and local relief measures, please visit our COVID-19 Resource Center on our website. If you have any questions, please contact your Tronconi Segarra & Associates advisor or a member of our response team at


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