The Small Business Administration (SBA) will issue rules and guidance, a modified borrower application form, and a modified loan forgiveness application implementing legislative amendments to the Paycheck Protection Program (PPP). These modifications will implement the following important changes:
- Extend the covered period for loan forgiveness
- Lower requirements of a borrower’s loan proceeds used for payroll costs
- Provide a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees
- Increase to 5 years the maturity of PPP loans that are approved by SBA
- Extend the deferral period for borrower payments of principal, interest, and fees on PPP loans
- June 30, 2020, remains the last date on which a PPP loan application can be approved
Click here for the SBA press release, including the detailed list of changes.