Good afternoon.
The U.S. Small Business Administration, in consultation with the U.S. Department of the Treasury, has issued new and revised guidance for the Paycheck Protection Program (PPP). This guidance implements the Paycheck Protection Program Flexibility Act (PPPFA), signed into law by President Trump on June 5, 2020, and expands eligibility for businesses with owners who have past felony convictions.
Key Updates
  • The “covered period” for a PPP loan adjusted from June 30, 2020, to December, 30, 2020
  • For loans made before June 5, 2020, borrowers and lenders may mutually agree to extend the maturity of such loans from two years to five years
  • The maturity for loans made on or after June 5, 2020 is five years
  • Those that submit a loan forgiveness application to a lender within 10 months after the end of the loan forgiveness covered period will not have to make any payments of principal or interest on the loan before the date on which SBA remits the loan forgiveness amount on the loan to the lender (or notifies the lender that no loan forgiveness is allowed).
  • The SBA Administrator interprets the Act’s 60 percent payroll costs requirement to be a proportional limit on non-payroll costs as a share of the borrower’s loan forgiveness amount, rather than as a threshold for receiving any loan forgiveness.
  • The eligibility threshold for those with felony criminal histories has been changed. The look-back period has been reduced from 5 years to 1 year to determine eligibility for non-financial felonies. The period remains 5 years for felonies involving fraud, bribery, embezzlement, or a false statement in a loan application or an application for federal financial assistance. The application also eliminates pretrial diversion status as a criterion affecting eligibility.
Read the entire Interim Final Rule here.
Access the updated PPP Borrower Application here, and the Lender’s Loan Guaranty Application here.
Please read below for more informaion on our small business grants! We hope you will share and support! As always, call the office with any questions or concerns.
Enjoy your evening!