This week the SBA issued new guidance on Paycheck Protection Program (PPP) loans.
Deferral Period for PPP Payments
In a new FAQ, the SBA clarified that the deferral period for all loan payments is either the date that the SBA remits the borrower’s loan forgiveness amount to the lender, or 10 months after the end of the borrower’s covered period (if the borrower does not apply for forgiveness). The extension applies to all PPP loans. Read more here.
Loans of $50,000 or Less
Organizations with loans under $50,000 will not be penalized if they reduced the number of workers or their pay, a welcome change for small businesses for which the prior requirement that headcount and payroll levels remain at pre-COVID levels was sometimes impossible. A new forgiveness application was issued for these smaller loans. Click here to read the Interim Final Rule on this guidance.