SBA’s Paycheck Protection Program (PPP) loans provided nearly $800 billion dollars of crucial financial support to over 8.5 million businesses and nonprofit organizations in the face of the COVID-19 pandemic. But as the proverb goes, “all good things must come to an end.” SBA closed the PPP doors to new loan guaranty applications at the end of May 2021 and released a closing statement on the program’s success.
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Congress Changes the Rules on PPP Loan Forgiveness, but Questions Remain
Newly passed changes to the Paycheck Protection Program are designed to make it easier for small businesses to have their loans forgiven.
The Paycheck Protection Program has been around since the end of March and provides funds for small businesses to retain employees and keep operating during the global coronavirus pandemic. If used properly, the business should have all or a portion of the loan forgiven. The new law eases some of the restrictions on how that money can be spent.
Continue readingSBA: It’s (Maybe) Fine if You Didn’t Count the Employees of Your Foreign Affiliates for PPP Purposes
In what might be a classic “now you tell me” scenario, the SBA issued a new rule May 21 saying that if an applicant failed to count the employees of its foreign affiliates when it was determining its eligibility, the SBA will not hold that against the applicant so long as the application was submitted before the SBA clarified that requirement.
The problem with that, however, is that because the safe harbor ended May 18, it’s highly likely that a lot of those businesses already gave their PPP loan back. They’d be forgiven for thinking they had to, as earlier this month Sen. Marco Rubio was indicating that Congress would investigate companies who took PPP funds for which they weren’t eligible.
Continue readingSBA Releases PPP Loan Forgiveness Application
On May 15, SBA released the Paycheck Protection Program Loan Forgiveness Application. Because loan forgiveness was a huge component of Paycheck Protection Program, the application is hugely important. While this post won’t do a deep dive into the loan forgiveness rules, we wanted to bring this to the attention of our blog readers.
Continue readingRunning the Numbers: SBA OIG Tallies Up Handling of PPP Loans
The SBA’s Office of Inspector General released an early report on SBA’s handling of the Paycheck Protection Program (PPP). The report identified some important areas where SBA has not quite hit the mark in matching the priorities of the Coronavirus Aid, Relief, and Economic Security (CARES) Act with SBA’s implementation and guidance for PPP loans.
Continue readingUPDATE: SBA Extends PPP Loan Payback Safe Harbor Provision Deadline (Again!) to May 18
Since our post yesterday, the SBA has once again updated the safe harbor deadline for paying back Paycheck Protection Program loans to Monday, May 18.
Continue readingUPDATE: Too Little, Too Late? SBA Updates Guidance on PPP Safe Harbor the Day Before May 14 Deadline
**UPDATE 5/14/20: Since publication of this post, the SBA has now updated the PPP Safe Harbor deadline to May 18. This post has been updated to include this additional information.
Just hours before the first extended May 14 deadline for businesses to return “unnecessary” Paycheck Protection Program loans without penalties, the SBA has published new guidance on how it will review borrowers’ required good-faith certifications.
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