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The Small Business Administration (SBA) offered new updates in support of the Paycheck Protection Program (PPP). These updates follow the launch of a second round of PPP funding, which began on April 27.
The SBA released an interim rule on disbursement requirements. The new rule addresses the following:
- Discusses what a lender should do if a borrower does not return documentation within 20 calendar days of loan approval;
- States that PPP loans should be disbursed in a single disbursement within 10 days of the SBA issuing a loan number;
- Offers a transition period for loans disbursed prior to 4/28/20;
- Provides an overview of the SBA Form 1502 reporting process, noting that lenders must electronically upload SBA Form 1502 information within 20 calendar days after a PPP loan has been approved or by 5/18/20; and
- Offers clarity on loan processing fees.
The SBA also issued an interim rule relating to PPP criteria for seasonal employees. The new rule provides seasonal employers the option of using any consecutive 12-week period between 5/1/19 – 9/15/19 for determining their maximize loan amount.
Lastly, the SBA made additional edits to its FAQ document. The latest document, dated 4/29/20, contains new information concerning businesses and payroll support, and business ownership changes.
In other SBA news, on Wednesday from 4:00-11:59 PM, the administration only accepted PPP loan applications from lending institutions with asset sizes less than $1 billion dollars. This action was made to help ensure that the smallest participating lenders and their small business members had access to these loans. The SBA and the Department of Treasury is evaluating whether to create a similar reserved time for this asset size again in the future.