SBA issues rule to clarify Paycheck Protection Program loan forgiveness requirements

The Small Business Administration today released an interim final rule to clarify Paycheck Protection Program loan forgiveness requirements, and the agency’s process for reviewing PPP loan applications and loan forgiveness applications.

Topics include the loan forgiveness process; payroll and non-payroll costs eligible for loan forgiveness; reductions to the loan forgiveness amount; and documentation requirements. Effective immediately, the rule will be published in the June 1 Federal Register with comments accepted for 30 days.

In a second interim final rule, the SBA also published information on the agency’s process for reviewing PPP loan applications and loan forgiveness applications. The Coronavirus Aid, Relief, and Economic Security Act created the program to provide forgivable loans to help eligible small businesses keep workers on the payroll during the pandemic.