06/25/2020

SBA Says PPP Recipients Can Apply Early for Loan Forgiveness

The 34-page document outlines several significant changes

New Paycheck Protection Program (PPP) guidance released Monday night declares that PPP recipients can apply for loan forgiveness early but that doing so could cost them money.

In a 34-page interim final rule (IFR) issued in consultation with Treasury, the U.S. Small Business Administration (SBA) addresses a number of issues related to the PPP, which was created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, to provide forgivable loans to small businesses, [some] not-for-profits and certain other entities hurt by the economic impacts of the COVID-19 pandemic and associated government-imposed quarantines.  

Specifically, the new interim final rule makes revisions to previous guidance to reflect the Paycheck Protection Program Flexibility Act of 2020, P.L. 116-142, which became law on June 5 and made significant changes to the PPP.

Please select this link to read the complete article from the Journal of Accountancy.