On August 10, the Small Business Administration (SBA) opened its Paycheck Protection Program (PPP) loan forgiveness portal, which enables lenders to submit information for approval. PPP loans are eligible for forgiveness if the money borrowed was spent on qualifying expenses such as payroll expenses, rent, and utilities. Lenders in Maine made 28,309 loans and distributed over $2 billion to local businesses.
Lenders are responsible for reviewing the forgiveness application, but borrowers are responsible for providing documentation and accurate information regarding the use of the funds. The SBA has provided two options for the forgiveness application: the standard application and the EZ form for smaller borrowers or independent contractors.
The SBA also released an updated interim final rule and a FAQ document for lenders and borrowers.
Interim Final Rule – Appeals of SBA Loan Review Decisions Under the PPP (Released 8/11/20)
This is an extensive interim final rule covering the rules and regulations regarding the process of appealing a SBA Loan Review decision, including how that would be considered by the Office of Hearing and Appeals (OHA).
Frequently Asked Questions For Loan Forgiveness (Released 8/11/20)
The SBA released an updated FAQ for loan forgiveness, covering a wide range of questions of interest to lenders. The FAQ covers general loan forgiveness information, payroll related questions, loan forgiveness nonpayroll costs, and loan forgiveness reductions—including items such as FTE employees. Please pay close attention to Pages 10 and 11 which address the EIDL Advance in conjunction with a PPP loan.