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U.S. Treasury and SBA Issues New Guidance on PPP Loans

Thursday, June 11, 2020   (0 Comments)
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The new guidance is a final interim rule adjusting the first interim rule for Paycheck Protection Program loans.
 
The revisions are listed on pages 6 though 13 of the document. CALPASC members who have taken out or are considering a PPP loan will want to review those changes.
 
The major revisions are:
  1. A borrower doesn't have to make any principal or interest payments until 10 months after the end of their "covered period" for loan forgiveness.
  2. If your PPP loan was made before June 5, 2020, you may elect to use the original 8 week "covered period" for loan forgiveness amounts. June 5 or after, you must use the 24 hour week "covered period".
  3. The new minimum 60% devoted to payroll for loan forgiveness is not a threshold for no loan forgiveness. The new interim rule states that the loan forgiveness will be reduced proportionately by payroll payments below the 60% amount.
And, as usual, they say more guidance will be coming in the future.
CALPASC members can click here for a copy of the rule.

Also, if you are considering a PPP loan, June 30, 2020 appears to be the deadline for applying, and the application was just changed, on June 11, 2020.

Click here to see the new application.

Any questions, contact CALPASC Director of Risk Management Bruce Wick, at bwick@calpasc.org, or 760-535-9623.

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