SBA and Treasury Issue Revised Guidance on Paycheck Protection Program

The guidance, including an interim rule on the PPP, includes new lender and borrower applications and extensions on loan forgiveness periods.

6/15/2020 1:00 PM

AdvocacyCOVID-19News
SBA and Treasury Issue Revised Guidance on Paycheck Protection Program

New guidance reflecting reforms to the Paycheck Protection Program (PPP) established to extend the availability of the program for small businesses is now available from the U.S. Small Business Administration (SBA) and U.S. Department of the Treasury.

According to a news release  from the SBA and Treasury, the guidance is part of the Paycheck Protection Program Flexibility Act (PPPFA) signed into law on June 5, 2020 and updates relating to loan maturity, deferral of loan payments and forgiveness provisions.

The new guidance, according to the news release, implements important changes through revisions to the SBA’s interim final rule on the PPP including:

  • Extends the covered period for loan forgiveness from eight weeks after the date of loan disbursement to 24 weeks after the date of loan disbursement, providing substantially greater flexibility for borrowers to qualify for loan forgiveness. Borrowers who have already received PPP loans retain the option to use an eight-week covered period.
  • Provides a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees for borrowers that are unable to return to the same level of business activity the business was operating at before Feb. 15, 2020, due to compliance with requirements or guidance issued between March 1, 2020 and Dec. 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to worker or customer safety requirements related to COVID-19.
  • Provides a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees, to provide protections for borrowers that are both unable to rehire individuals who were employees of the borrower on Feb. 15, 2020, and unable to hire similarly qualified employees for unfilled positions by Dec. 31, 2020.

SBA issued revised PPP application forms to conform to these changes including a revised borrower application and revised lender application.

SBA will issue additional guidance regarding loan forgiveness and a revised forgiveness application to implement the PPPFA soon, according to the news release.

ACA’s past Daily Huddles in April focused on guidance on the SBA Loan Programs.

Members may listen here:

Working with the Small Business Administration

Exploring New Guidance on the SBA Loan Programs

Related Content from ACA International:

Revisions to the Paycheck Protection Program Flexibility Act Explained

Paycheck Protection Program Fixes Approved by U.S. Senate

For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at Licensing@acainternational.org or call (952) 926-6547.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

SBA and Treasury Issue Revised Guidance on Paycheck Protection Program

New guidance reflecting reforms to the Paycheck Protection Program (PPP) established to extend the availability of the program for small businesses is now available from the U.S. Small Business Administration (SBA) and U.S. Department of the Treasury.

According to a news release  from the SBA and Treasury, the guidance is part of the Paycheck Protection Program Flexibility Act (PPPFA) signed into law on June 5, 2020 and updates relating to loan maturity, deferral of loan payments and forgiveness provisions.

The new guidance, according to the news release, implements important changes through revisions to the SBA’s interim final rule on the PPP including:

  • Extends the covered period for loan forgiveness from eight weeks after the date of loan disbursement to 24 weeks after the date of loan disbursement, providing substantially greater flexibility for borrowers to qualify for loan forgiveness. Borrowers who have already received PPP loans retain the option to use an eight-week covered period.
  • Provides a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees for borrowers that are unable to return to the same level of business activity the business was operating at before Feb. 15, 2020, due to compliance with requirements or guidance issued between March 1, 2020 and Dec. 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to worker or customer safety requirements related to COVID-19.
  • Provides a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees, to provide protections for borrowers that are both unable to rehire individuals who were employees of the borrower on Feb. 15, 2020, and unable to hire similarly qualified employees for unfilled positions by Dec. 31, 2020.

SBA issued revised PPP application forms to conform to these changes including a revised borrower application and revised lender application.

SBA will issue additional guidance regarding loan forgiveness and a revised forgiveness application to implement the PPPFA soon, according to the news release.

ACA’s past Daily Huddles in April focused on guidance on the SBA Loan Programs.

Members may listen here:

Working with the Small Business Administration

Exploring New Guidance on the SBA Loan Programs

Related Content from ACA International:

Revisions to the Paycheck Protection Program Flexibility Act Explained

Paycheck Protection Program Fixes Approved by U.S. Senate

For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at Licensing@acainternational.org or call (952) 926-6547.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

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