Government Contracts SBA Updates PPP Loan Forgiveness and Review Procedures
Tuesday, February 23, 2021

SBA Updates PPP Loan Forgiveness and Review Procedures

By Government Contracts Editorial Staff

The Small Business Administration has issued an interim final rule addressing forgiveness and loan reviews under the Paycheck Protection Program. The intent of the PPP is to provide economic relief to small businesses adversely impacted by the COVID-19 pandemic. Section 1102 of the Coronavirus Aid, Relief, and Economic Security Act (PL 116-136) 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 rule consolidates prior rules related to forgiveness and reviews of PPP loans and incorporates changes made by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (PL 116-260) addressing forgiveness of second draw PPP loans. The effective date of the rule is February 3, 2021, except as provided in the Economic Aid Act. Comments on the rule are due March 8, 2021. For the text of the rule, see ¶70,425.700.

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