SBA and Treasury Announce New and Revised Guidance Regarding the Paycheck Protection Program

The U.S. Small Business Administration, in consultation with the U.S. Department of the Treasury, issued new and revised guidance for the Paycheck Protection Program (PPP). This guidance implements the Paycheck Protection Program Flexibility Act (PPPFA), signed into law by President Trump on June 5, 2020, and expands eligibility for businesses with owners who have past felony convictions.

To implement the PPPFA, SBA revised its first PPP interim final rule, which was posted on April 2, 2020.  As described in detail in our announcement on June 8, 2020, the new rule updates provisions relating to loan maturity, deferral of loan payments, and forgiveness provisions.

In addition, as an exercise of SBA’s policy discretion in furtherance of President Trump’s leadership and bipartisan support on criminal justice reform, the eligibility threshold for those with felony criminal histories has been changed.  The look-back period has been reduced from 5 years to 1 year to determine eligibility for applicants, or owners of applicants, who, for non-financial felonies, have (1) been convicted, (2) pleaded guilty, (3) pleaded nolo contendere, or (4) been placed on any form of parole or probation (including probation before judgment).  The period remains 5 years for felonies involving fraud, bribery, embezzlement, or a false statement in a loan application or an application for federal financial assistance.  The application also eliminates pretrial diversion status as a criterion affecting eligibility.

SBA issued revised PPP application forms to conform to these changes.  The guidance and revised application forms are available on SBA’s and Treasury’s websites.  SBA will issue additional guidance regarding loan forgiveness and a revised forgiveness application to implement the PPPFA in the near future.

Click here to view the new Interim Final Rules.

Click here to view the new Borrower Application.

Click here to view the new Lender Application.

The SBA is hiring temporary employees to assist with disaster relief efforts during these unprecedented times. The positions include:

• Call Center Customer Service Representative
• Document Preparation/Legal Review/Loan Closings
• Loan Processing/Credit Analysis/Mortgage Underwriting
• Program Support

Apply today

Get Your Business Ready for Severe Weather- How to Prepare, Respond and Recover (Archived Webinar) A natural disaster will strike no matter where you live in the United States. It’s not a question of if, but when. But if you’re prepared, the damaging impact of a tornado, flood, earthquake or hurricane can be managed. A recent webinar conducted jointly by the SBA, the Insurance Information Institute (Triple-I), and the Insurance Institute for Business and Home Safety offered business owners valuable advice on how to plan to withstand a disaster. Watch the webinar

FAST Forward: Advancing Small Business in these Unprecedented Times (Virtual Event) GSA’s Office of Small and Disadvantaged Business Utilization and the Federal Acquisition Service are partnering to host a FAST Forward virtual event on June 22 to assist and answer questions on how small businesses can sell products and services to the federal government.  The training sessions will give you an overview of what you need to know to pursue a federal or GSA contract; from market research, registering your business in SAM.gov (System for Award Management), supply chain resilience and contract compliance, to adapting to some of the emerging needs we are experiencing in response to the global pandemic. Links to additional small business resources will also be provided after the event. Register today

Beware of Scams and Fraud Schemes The Office of Inspector General recognizes that we are facing unprecedented times and is alerting the public about potential fraud schemes related to economic stimulus programs offered by the U.S. Small Business Administration in response to the Novel Coronavirus Pandemic (COVID-19). The Coronavirus Aid, Relief, and Economic Security (CARES) Act, the largest financial assistance bill to date, includes provisions to help small businesses. Fraudsters have already begun targeting small business owners during these economically difficult times.  Be on the lookout for grant fraud, loan fraud, and phishing. Learn more

Federal Coronavirus Resources State, local, and federal agencies are working together to maintain the safety, security, and health of the American people. Check out coronavirus.gov for updates from the White House's Coronavirus (COVID-19) Task Force. Go to cdc.gov for detailed information about COVID-19 from the Centers for Disease Control and Prevention.   Learn more about the federal government's response

Virtual Mentoring and Training  Offices around the country may be closed to the Coronavirus pandemic, but SCORE, Small Business Development Centers, Women’s Business Centers, and Veterans Business Outreach Centers and other resource partners are providing free business mentoring and training by phone, email, and video. Find an SBA resource partner near you

###

About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.­