The Paycheck Protection Program reopened for applications on July 6, 2020 and will remain open (pending availability of funds) through August 8, 2020. As of July 6, 2020 roughly $521 billion in Paycheck Protection Program Loans had been disbursed out of the $659 billion allocated.
The SBA has also made data on loans available to the public, disclosing loan size, business type and location, number of jobs retained, NAICS Code, and certain demographic data for loans under $150,000, and disclosing the same data plus business name, address and range of loan size for loans over $150,000.1 The SBA noted in the release an interest in striking a balance between the public’s interest in information and the SBA’s interest not to harm businesses who took out loans.
Prior to the re-opening of the program, the SBA released an Interim Final Rule on June 24, 2020 implementing certain changes from the Flexibility Act and updating certain requirements and calculations pursuant to the Paycheck Protection Program loan forgiveness application forms.
Now Borrowers may seek forgiveness of PPP loans before the end of the “Covered Period” (or “Alternative Covered Period”2), so long as all proceeds of the PPP loan which are eligible for forgiveness have been spent. However, if a borrower applying for forgiveness before the end of the Covered Period will be subject to a reduction in the loan amount due to a reduction of salaries or wages in excess of 25% (the “Salary Reduction”), the borrower will be required to account for that excess salary reduction for the full Covered Period when making its reduction calculation.3 Any portion of the loan amount not forgiven due to a Salary Reduction must be repaid before the maturity date of the loan.4
The rule also provides examples of documentation that can be used to verify to whether a borrower meets one of the Salary Reduction safe harbors:5
The rule did not modify the requirements for a reduction of forgiveness based on a reduction of full time equivalent employees.
The Paycheck Protection Program forgiveness applications can be found here:
On June 25, 2020, the Department of the Treasury released updated Frequently Asked Questions for the Paycheck Protection Program implementing certain changes to the program. These changes include the following:
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1 Data available at: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program#section-header-0
2 All references to the “Covered Period” apply equally to applicants utilizing the “Alternative Covered Period” provisions of the rules unless otherwise specified.
3 Interim Final Rule on Business Loan Program Temporary Changes; Paycheck Protection Program – Certain Eligible Payroll Costs, Doc. No. 2020-14128 § III.1.c., p.9.
4 Id. § III.2, p.8.
5 For information on the safe harbors generally, See SBA Form 3508 Loan Forgiveness Application Instructions for Borrowers, FTE Reduction Safe Harbor, p. 5.
6 Interim Final Rule on Business Loan Program Temporary Changes; Paycheck Protection Program – Certain Eligible Payroll Costs, Doc. No. 2020-14128 § III.1.f., p. 22.
7 Id. § III.1.f., p. 23.
8 Paycheck Protection Program Frequently Asked Questions (June 25, 2020), Question 12.
9 Paycheck Protection Program Frequently Asked Questions (June 25, 2020), Question 20.
10 Paycheck Protection Program Frequently Asked Questions (June 25, 2020), Question 48.
11 Paycheck Protection Program Frequently Asked Questions (June 25, 2020), Question 49.