SBA releases new, revised PPP guidance reflecting PPP Flexibility Act

June 15, 2020

The U.S. Treasury and Small Business Administration (SBA) last week released new and revised guidance regarding the Paycheck Protection Program (PPP). The guidance is designed to implement the changes signed into law by President Donald Trump earlier this month in the PPP Flexibility Act.

To implement the legislation, the SBA has revised its April 2 interim final rule, updating provisions within the rule relating to loan maturity, deferral of loan payments and forgiveness provisions.

CUNA’s CompBlog examines in detail the changes made by the SBA to implement requirements of the PPP Flexibility Act.

The SBA has issued a revised PPP borrower application and lender application to conform with these changes, and expects to issue additional guidance regarding loan forgiveness and a revised forgiveness application to implement the PPP Flexibility Act in the near future.

The agencies also announced Friday, as an exercise of the SBA’s policy discretion, that the eligibility threshold for those with felony criminal histories has been changed. The look-back period has been reduced to one year (down from five years) to determine eligibility for applicants, or owners of applicants for non-financial felonies.