By Government Contracts Editorial Staff
The Small Business Administration has issued additional guidance on the Paycheck Protection Program. An interim final rule follows SBA’s prior rules (¶70,425.654 through ¶70,425.675, ¶70,425.678, ¶70,425.679) 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. The new rule (¶70,425.685) revises two of the prior interim final rules (¶70,425.669, ¶70,425.675) by providing additional guidance concerning the forgiveness and loan review processes for PPP loans of $50,000 or less. For PPP loans of all sizes, the rule addresses lender responsibilities with respect to the review of borrower documentation of eligible costs for forgiveness in excess of a borrower’s PPP loan amount. The new interim final rule went into effect on October 14, 2020. Comments on the rule are due November 18, 2020.
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