Alert – SBA Payment Protection Program – Interim Final Rules – Loan Forgiveness

May 29, 2020

To our clients and friends:

On May 23, 2020, the U.S. Small Business Administration ("SBA") issued two interim final rules (the “Interim Final Rules”) related to the forgiveness of loans originated under the SBA’s Paycheck Protection Program (the “PPP”). The first Interim Final Rule provides the requirements for loan forgiveness, which includes instructions for properly completing the PPP Loan Forgiveness Application for borrowers. The second Interim Final Rule describes the SBA’s procedures for reviewing PPP loan and forgiveness applications.

Our Alert summarizes both sets of Interim Final Rules, which are effective immediately. Yesterday, the House of Representatives passed a bipartisan bill that would change key PPP loan forgiveness provisions. The Senate has put forth a similar bill, but it has not yet passed. As a result, it is very likely that the Interim Final Rules will be further modified. We are closely monitoring these developments and will provide updates as appropriate.

Our Alert is available here.

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Alert – Payment Protection Program – Latest Developments as of May 15, 2020

May 15, 2020

To our clients and friends:

On May 13, 2020, the U.S. Small Business Administration ("SBA"), in consultation with the U.S. Department of the Treasury, updated their Frequently Asked Questions Memorandum (the “FAQ”) concerning the Paycheck Protection Program (the "PPP"). Most significantly, the FAQ: (1) clarifies that a safe harbor is provided regarding the SBA’s review of borrower necessity certifications of PPP loan requests of $2.0 million or less; and (2) notes that the PPP amnesty provision that would allow borrowers to repay their PPP loans in full without penalty upon the determination that their necessity certifications are no longer valid was extended to May 18, 2020.

Our Alert is available here.

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