SBA issues new PPP forms, rule

Jun 12, 2020 via ICBA
​The Small Business Administration issued new Paycheck Protection Program application forms and an interim final rule implementing ICBA-advocated reforms to the program.

• Updated borrower application form
• Updated lender application form
• New interim final rule

The new rule revises the original PPP interim final rule issued April 2 and implements reforms included in the Paycheck Protection Program Flexibility Act of 2020, which was signed into law June 5 by President Trump.
Among its policies, the law extends from eight to 24 weeks the amount of time borrowers have to spend PPP funds while remaining eligible for forgiveness and lowers the amount that must be spent on payroll costs from 75 percent to 60 percent.
The rule notes that:

• 60 percent of the loan forgiveness amount must be payroll, but borrowers will receive partial forgiveness to the extent they fall short of 60 percent.
• The new five-year maturity term applies to loans that receive an SBA approval/loan number on June 5 or later.
• SBA and Treasury will provide further guidance on forgiveness, loan reviews, and advance purchases of PPP loans by SBA.

ICBA offers a summary of the law that community banks can share with borrowers. Meanwhile, ICBA continues calling on community bankers and small-business owners to urge Treasury and SBA to enact additional reforms to simplify the PPP process.