SBA Updates First PPP Interim Final Rule Following PPP Flexibility Act

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By Amber Goering posted 06-18-2020 02:39 PM

  

SBA Updates First PPP Interim Final Rule Following PPP Flexibility Act


An Ignite Blog by:

Amber K. Goering, CPA, CGMA

Goering and Granatino, P.A.


On June 10, 2020, the Small Business Administration (SBA) issued an updated interim final rule for the Paycheck Protection Program (PPP) in response to the PPP Flexibility Act passed on June 5, 2020. The updated guidance accounts for revisions made to the covered period, usage of funds changes, extended safe harbors, and more.

Here is a quick rundown of the changes made by the PPP Flexibility Act. 
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 Also of note:

  • *Borrowers may elect to stick with the 8-week covered period for loans originating prior to June 5, 2020. However, it is not clear if the June 30, 2020, safe harbor deadline still applies.
  • The amount of any Economic Injury Disaster Loan (EIDL) refinanced will be factored in when determining the percentage of proceeds for payroll costs.
  • It is unclear whether compensation limits formerly prorated based on 8 weeks now prorated based on 24 weeks.
  • It is unclear if the covered period may end prior to 24 weeks if funds have been used.

 On Wednesday, June 17, 2020, the SBA and Treasury announced a new EZ and a revised Full Loan Forgiveness Application for the Paycheck Protection Program.

  

Note: This information is current as of June 17, 2020.

Printed with permission. The Ignite blog is an official publication of the Kansas Society of CPAs, Copyright 2020.

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