Rent payments are eligible costs if the rent agreement predates February 15, 2020. If your lease was renewed after February 15, 2020, it will have no impact on your ability to include rent payments in your forgiveness calculation. Rent payments attributable to the business operations of a tenant or sub-tenant of the PPP borrower is not eligible for forgiveness. If a borrower works out of their home, the share of covered home costs deductible on the Schedule C is eligible for forgiveness.
If the borrower is paying rent to an affiliated business, those rent payments are limited to the mortgage interest paid by the affiliated business that is attributable to the space rented by the borrower.
For an example, Susan owns Susan’s Dress Shop in Warren. Susan also owns a small real estate company that owns the building where the shop is located. If Susan’s Dress Shop wants to include rent payments to calculate loan forgiveness, the rent payments are limited to the mortgage interest payments paid by Susan’s real estate company and only the portion related to the space rented by Susan’s Dress Shop.