SBA Offers Additional PPP Loan Forgiveness Information

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A week after releasing the long-awaited Paycheck Protection Program (PPP) Loan Forgiveness Instructions and Application on May 15, 2020, the U.S. Treasury and Small Business Administration (SBA) followed up with additional guidance in the form of two new interim final rules on May 22, 2020.

This new information addresses many common questions, but does not make any changes to some of the most contested provisions of the CARES Act related to PPP Loans – the mandated eight-week spending period and the 75/25 rule requiring borrowers to spend three-quarters of the funds on payroll to qualify for full loan forgiveness. (see related post on current Congressional action pushing for more flexibility)

The new guidance addressing the Loan Forgiveness Requirements reiterates the information provided in the instructions for the PPP Loan Forgiveness Application. This interim final rule provides additional details about certain circumstances that may affect the amount of forgiveness the borrower may qualify for and specifies which payroll and non-payroll costs are eligible for forgiveness.

The second piece of new forgiveness guidance released primarily covers Loan Review Procedures and Related Borrower and Lender Responsibilities. It sets forth rules for the SBA to review PPP Loans for borrower eligibility and forgiveness; establishes a 30-day window for borrowers to appeal SBA determinations (details for this process to be released in a later interim final rule); provides requirements for lenders to determine forgiveness of PPP loans within 60 days of receipt of application (as well as guidelines for subsequent review by the SBA); and confirms that lenders will not be paid fees for PPP loans deemed ineligible.

It can be difficult for borrowers to keep up with the seemingly-endless stream of new guidance related to PPP loans. Grossman Yanak & Ford LLP will continue to review the latest updates and post information for you.


We will be hosting a free webinar to review the PPP Loan Forgiveness Rules and Procedures on Friday, May 29, 2020. Click here for more details and a link to register.


Should you have questions or comments, please contact Bob Grossman, Don Johnston or Mike Weber at 412-338-9300.

Related posts:

Bipartisan Paycheck Protection Program Legislation Appears to Be on the Way

Paycheck Protection Program Loan Forgiveness Application Released

SBA Releases Good News for PPP Loan Borrowers Under $2 Million

Further SBA Guidance Extends Safe Harbor Deadline for SBA Loans

New SBA Guidance on PPP Loan Forgiveness Related to Laid-Off Employees

Paycheck Protection Program Loans – Round 2

FAQs Issued to Further Clarify Guidance on PPP Loans

Paycheck Protection Program Loans (PPP) Available Under the CARES Act