By Government Contracts Editorial Staff
The Small Business Administration has provided additional guidance supplementing interim final rules (¶70,425.654 through ¶70,425.660) implementing sections 1102 and 1106 of the Coronavirus Aid, Relief, and Economic Security Act (PL 116-136). Section 1102 of the CARES Act temporarily added the Paycheck Protection Program to SBA’s 7(a) Loan Program, while section 1106 provided for forgiveness of up to the full principal amount of qualifying loans guaranteed under the PPP. The intent of the PPP is to provide economic relief to small businesses nationwide adversely impacted by COVID-19. Two new interim final rules provide guidance on increases to certain PPP loans (¶70,425.663) and additional eligibility requirements for certain electric cooperatives (¶70,425.665). A third rule (¶70,425.664) specifically revises SBA’s April 28, 2020, interim final rule (¶70,425.657) to extend the date by which certain PPP borrowers may repay their loans. The new repayment date is May 14, 2020. SBA issued this rule to provide a safe harbor with respect to a required certification and to make other conforming changes. These three rules went into effect on May 19, 2020, with comments due June 18, 2020. A fourth interim final rule (¶70,425.666) provides guidance on additional eligibility requirements related to entities with foreign affiliates. This rule has a May 21, 2020, effective date, and comments are due June 22, 2020.
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