By Payroll and Entitlements Editorial Staff
In consultation with Treasury, the Small Business Administration (SBA) has issued new and revised guidance for the Paycheck Protection Program (PPP).
New, revised PPP guidance. The guidance implements the Paycheck Protection Program Flexibility Act (PPPFA) (P.L. 116-142), which President Trump signed on June 5, 2020. The PPPFA aims to expand usability of the Coronavirus Aid, Relief, and Economic Security (CARES) Act’s (P.L. 116-136) PPP for small businesses.
Additionally, the updated guidance expands PPP eligibility for business owners who have past felony convictions. Furthermore, to implement the PPPFA, the SBA revised its first PPP interim final rule issued in April. As noted in Treasury’s announcement last week, the new rule reflects updates related to loan maturity, deferral of loan payments, and forgiveness.
Accordingly, the SBA has also issued revised PPP application forms. The guidance and revised application forms are available on SBA’s and Treasury’s websites. Notably, the SBA will issue additional guidance regarding loan forgiveness and a revised forgiveness application to implement the PPPFA in the near future, according to Treasury.
Bipartisan senators request PPP forgiveness application simplification. In related news, a group of over 40 bipartisan senators have requested that Treasury and the SBA simplify the PPP Loan Forgiveness Application for certain small business loans. Specifically, the senators have urged Treasury and the SBA to revise the form so that it is no longer than one page for any loan under $250,000.
"While the Small Business Administrator was also given the ability to require additional documentation necessary to verify proper use of PPP funds, we believe it is beyond the program’s intent to require the information solicited in the 11-page forgiveness application that the SBA recently released," the senators wrote in a recent letter addressed to Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza. "We appreciate the interest in appropriately auditing the use of government money. However, the loan forgiveness application – which understandably needs more information for loans worth significantly more than $250,000 – is three times longer than the original application for the PPP."
House small business committee set to examine PPP. Meanwhile, the House Small Business Committee has scheduled a Wednesday, June 17 hearing to examine the PPP. The hearing is expected to include testimony from borrowers and lenders regarding the issues both have faced in the application process and use of the PPP loans, particularly the challenges surrounding forgiveness qualifications. Lawmakers are also expected to receive suggestions on how to continue optimizing the small business loan program.
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