July 7, 2020

Volume X, Number 189

July 07, 2020

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July 06, 2020

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SBA Releases New Rules on PPP Loan Forgiveness and Loan Reviews

Yesterday, the SBA released two new interim final rules related to PPP Loan Forgiveness and PPP Loan Review. The two new rules largely track information that was included in the Loan Application released a week ago with some notable additional points:

The PPP Loan Forgiveness Rules clarify the following:

  • To the extent a borrower chooses an alternative payroll covered period to align with its next payroll date, non-payroll costs will still be measured during the original eight week covered period following disbursement of the loan.

The PPP Loan Review Rules clarify the following:

  • The SBA may review a borrower’s eligibility, loan amount and use of proceeds, and loan forgiveness amounts for any size loan at any time. All documents must be saved for six years after the loan is forgiven or repaid in full;

  • SBA may request additional documentation at any time;

  • A borrower may appeal the SBA’s determinations. Additional guidance on appeal procedures will be issued at a later date.

A link to Polsinelli’s prior article summarizing all of the application requirements.

See the full PPP Loan Forgiveness Rules here.

See the full PPP Review Rules here.

© Polsinelli PC, Polsinelli LLP in CaliforniaNational Law Review, Volume X, Number 145

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About this Author

Phil Feigen of the Polsinelli Law Firm Corporate Transaction Attorney, in Washington DC
Office Managing Partner

Phil Feigen brings a unique perspective to providing general corporate advice, as well as complex business counsel to clients in ever-changing regulatory environments.  For more than 20 years, Phil has been providing guidance with respect to Small Business Investment Companies and other Small Business Administrative regulations, federal and state banking laws and federal securities laws. 

Phil focuses on helping clients through the SBIC licensing process so that they may realize the benefits of the program and increase the amount of investment...

202-626-8330
Sara C. Ainsworth Securities & Corporate Finance Attorney Polsinelli Washington, D.C.
Associate

As an associate in the Securities & Corporate Finance practice, clients rely on Sara Ainsworth to work with Polsinelli’s team of attorneys to analyze each transaction matter to develop a strategic approach to representation based on the client’s immediate and long-term business and operational goals.

Working closely with seasoned Polsinelli attorneys in the Securities & Corporate Finance practice, Sara helps deliver a range of legal services during the life cycle of the client’s business—from selecting the appropriate choice of entity through to exit strategy.  Her practice focuses on:

  • Planning and executing capital-raising transactions
  • Drafting and negotiating key commercial agreements
  • Money service business and banking applications and registrations
  • Mergers and acquisitions and other strategic transactions
  • Fund formation, including regulated funds such as Small Business Investment Companies

Sara supports clients in a variety of industries, including the financial technology and mobility industries. Collaborating with attorneys from other related practices allows Sara and the entire attorney team to provide clients with comprehensive legal advice designed to minimize liability, maintain flexibility, and advance the client’s objectives.

202.772.8495