The Small Business Administration (SBA) and Department of Treasury has released two interim final rules, or IFRs. The first relates to determining eligible amounts for loan forgiveness under the Paycheck Protection Program (PPP), and the second about how lenders and the SBA will be review applications.
According to an NAPEO release, highlights from the Forgiveness Rules IFR include:
- Eligible payroll costs, including how to measure costs
- How to address amounts paid to furloughed employees
- Consideration of bonuses and hazard pay
- Payroll costs for owner-employees and those who are self-employed
- Eligible non-payroll costs,
- Forgiveness amount reductions
- Reductions in wages
- Lender responsibilities
The NAPEO has also shared highlights from the PPP Forgiveness Process IFR:
- The SBA may review any PPP loan it deems appropriate
- Lenders are required to confirm all borrower’s loan forgiveness application certifications, confirm receipt of documentation and confirm borrower calculations
- The lender can approve the LFA, deny the LFA with prejudice or deny without prejudice pending SBA review
To read the NAPEO’s “Summary of Paycheck Protection Program Loan Forgiveness Guidance” prepared by the Groom Law Group, click on the button below.