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SBA Issues PPP Flexibility Rules, Deadline for Loan Application June 30

Stage Directions • Industry News • June 17, 2020

Reminder: June 30 is Loan Application Deadline

The Small Business Administration has released new rules implementing the provisions of the Paycheck Protection Program Flexibility Act. While more guidance may soon follow, the rules include some helpful clarification, including confirmation that borrowers with less than 60% of expenditures dedicated to payroll will be eligible for partial loan forgiveness.

With $130 billion remaining in Paycheck Protection Program (PPP) resources, any potential applicant should take note that the opportunity to apply for a loan closes on June 30, 2020.

 You can download the new SBA rules implementing the provisions of the PPP Flexibility Act here.

Safe Harbors for Full Loan Forgiveness
Additional safe harbors allowing borrowers to achieve full PPP loan forgiveness are provided for reductions in full-time employees due to:

  • Documented inability in good faith to rehire individuals who were employees as of February 15, 2020, and an inability to hire similarly qualified employees for unfilled positions on or before December 31, 2020.
  • Documented inability in good faith to return to the same level of business activity as that business was operating at before February 15, 2020, due to compliance with requirements established by various federal agencies during the period from March 1, 2020, through December 31, 2020, related to maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19.

Learn more about the recent changes to the Paycheck Protection Program.

Download the Paycheck Protection Program Loan Forgiveness Application Here

This has been adapted from information provided by the League of American Orchestras and EisnerAmper.

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