News

On August 24, the U.S. Small Business Administration (SBA) released a new interim final rule regarding the Paycheck Protection Program (PPP). This new interim final rule provides additional guidance on the applicability of owner compensation rules and the eligibility of certain nonpayroll costs for forgiveness.

On August 3, 2020, the Federal Financial Institutions Examination Council (FFIEC) issued a joint statement addressing additional loan accommodations related to Covid-19. As borrowers near the end of initial loan accommodation periods, the FFIEC encourages financial institutions to consider loan arrangements that might mitigate adverse effects on borrowers. Specifically, the FFIEC promoted the following practices:

On August 4, the U. S. Small Business Administration (SBA), in consultation with the Department of the Treasury, issued additional guidance on the forgiveness of Paycheck Protection Program (PPP) loans in the form of Frequently Asked Questions.

Last week the U.S. Small Business Administration released revisions to the Paycheck Protection Program – First Interim Final Rule in response to the enactment of the Paycheck Protection Program Flexibility Act (Flexibility Act), H.R. 7010.

On June 6, the Senate approved the version of the Paycheck Protection Program Flexibility Act (Flexibility Act) as adopted by the House of Representatives last week. The Flexibility Act provides additional flexibility to borrowers in using PPP loan proceeds and qualifying for forgiveness. The bill is now on its way to President Donald Trump for his signature.

On May 28, 2020, the House of Representatives passed the Paycheck Protection Program Flexibility Act (Flexibility Act) by a vote of 417 to 1. The Act provides additional flexibility to borrowers in using PPP loan proceeds and qualifying for forgiveness. The Senate is expected to consider the legislation later this week although a competing bill is also pending in the Senate.

The Small Business Administration (SBA) recently issued a Loan Forgiveness Application (Form 3508) for borrowers with Paycheck Protection Loans. Below is a summary of some of the key considerations, issues and questions as borrowers and lenders work through the forgiveness process.