Paycheck Protection Program Update for 5/27/2020
The U.S. Small Business Administration (SBA) released additional guidance last Friday, 5/22/2020 in regards to the Paycheck Protection Program (PPP) loan forgiveness application.
While it provided some clarity on questions that have come up about how loan forgiveness will work it did not address the two components of the loan that have been the cause of most concern to small businesses: The eight-week period during which PPP funds must be spent to qualify for forgiveness or the rule requiring PPP borrowers to spend at least 75% of the funds on payroll costs to qualify for full loan forgiveness.
A new article from the Journal of Accountancy outlines the additional guidance that was provided on Friday along with a thorough assessment of those items that still require further explanation. To view the article please click here. Toward the end of the article, be sure to read about the new 19 page interim rule on the PPP review procedures along with the related borrower and lender responsibilities. This section clarifies that the SBA may review any PPP loan, regardless of size.