By Government Contracts Editorial Staff
The Small Business Administration has issued additional guidance on the Paycheck Protection Program. Two interim final rules supplement SBA’s prior rules (see ¶70,425.654 – ¶70,425.673) 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 PPP 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. One new rule (¶70,425.674; effective June 24, 2020) revises an eligibility requirement in SBA’s April 15, 2020, interim final rule (¶70,425.654) related to felony convictions of applicants or owners of the applicant. The changes address restrictions governing pending criminal charges and probation or parole. The other new rule (¶70,425.675; various effective dates) revises SBA’s June 1, 2020, interim final rule (¶70,425.669) by changing key provisions to conform to the Paycheck Protection Program Flexibility Act of 2020 (PL 116-142). These changes address loan forgiveness and loan review procedures. Comments on both rules are due July 27, 2020.
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