Last night, @SBAgov issued rules that excluded payments to independent contractors from the calculation of "payroll costs" to determine the amount of eligible borrower under #PPP. 1/ https://twitter.com/ourrepublic76/status/1246006315823951873

This rule is in flat contravention of the statute that Congress passed. The CARES Act specifically states in Section 1102(a)(2)(A)(viii)(I)(bb) that “payroll costs” includes “the sum of payment of any compensation to … a sole proprietor or independent contractor...." 2/

@SBA has apparently determined that Congress' language isn't workable. Millions of businesses use 1099 labor. My strong advice to my clients is to insist with their bank that they're entitled to include 1099 payments to independent contractors in calculating "payroll costs." 3/

We are looking at initiating litigation on behalf of our clients on Monday to press this point. end/