SBA – PPP IFR TO UPDATE ITS FIRST PPP IFR

On June 12 the Small Business Administration published an interim final rule (IFR) to update its April 2 IFR on the Paycheck Protection Program (PPP). On June 5, 2020, the Paycheck Protection Program Flexibility Act of 2020 (Flexibility Act) was signed into law, amending the CARES Act. This interim final rule changes key provisions, such as the loan maturity, deferral of loan payments, and forgiveness provisions, to conform to the Flexibility Act. SBA also is making conforming amendments to the use of PPP loan proceeds for consistency with amendments made in the Flexibility Act. Several of these amendments are retroactive to the date of enactment of the CARES Act, as required by section 3(d) of the Flexibility Act.

The provisions of the most recent IFR related to:

  • Loan forgiveness and deferral period were effective on March 27, 2020;
  • The maturity date of PPP loans was effective June 5, 2020; and
  • The remaining provisions are upon publication in the Federal Register, which is expected soon.

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