SBA and Treasury have released new policy updates to the PPP program. In particular, this rule updates and clarifies the forgiveness procedures from the PPP Flexibility Act and the new forgiveness forms. Please READ this rule and the new forgiveness applications.
Highlights from the Rule:
- Businesses may apply for forgiveness at any time during the Covered Period once they meet the requirement for forgiveness. They do not have to wait until the end of the 24 weeks.
- Clarifies the amount that Owners may pay themselves under the new Rule.
- FTE safe harbor for businesses that can document in good faith an inability to return to the same level of business activity as the borrower was operating at before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19 (COVID Requirements or Guidance).
PPP Interim Final Rule – Revisions to Loan Forgiveness Interim Final Rule and SBA Loan Review Procedures Interim Final Rule: https://www.sba.gov/document/policy-guidance-ppp-interim-final-rule-revisions-loan-forgiveness-interim-final-rule-sba-loan-review-procedures
Any Questions Contact:
Dan Rickman, Deputy District Director Upstate New York
U.S. Small Business Administration