The Department of the Treasury published new PPP Forgiveness regulations, further updating the guidance distributed earlier in June. These regulations provide additional clarity on the requirements of lenders during the forgiveness process.
Here are the highlights below:
- Recertifies the June 30, 2020 application deadline for PPP loans.
- Lenders have 60 days after receiving a forgiveness application to make a determination and notify the SBA of the determination and the borrower.
- If a borrower has a forgiveness application only partially accepted – then the lender determines when the first payment of remaining P&I is due.
- The regulations also provides additional, but limited, clarity on lenders responsibilities regarding how they review and document a borrowers calculations for payroll, expenses and reductions in employee hours.
The full Paycheck Protection Program – Revisions to the Loan Forgiveness Interim Final Rule and SBA Loan Review Procedures Interim Final Rule can be found here.