WASHINGTON – 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. This guidance implements the Paycheck Protection Program Flexibility Act, signed into law by President Donald Trump, June 5, and expands eligibility for businesses with owners who have past felony convictions.
To implement the PPPFA, SBA revised its first Paycheck Protection Program interim final rule, which was posted April 2. An SBA announcement June 8, explained 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 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 five years to one year to determine eligibility for applicants, or owners of applicants, who, for non-financial felonies, have been convicted, pleaded guilty, pleaded nolo contendere or been placed on any form of parole or probation, including probation before judgment. The period remains five 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 Paycheck Protection Program 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.
To view the new interim final rules, visit https://www.sba.gov/document/policy-guidance–ppp-interim-final-rule-revisions-first-interim-final-rule. To view the new borrower application, visit https://www.sba.gov/document/sba-form-2483-paycheck-protection-program-borrower-application-form. To view the new lender application, visit https://www.sba.gov/document/sba-form–lender-application-form-paycheck-protection-program-loan-guaranty-0.
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 http://www.sba.gov.
Submitted by U.S. Small Business Administration.