SBA Issues New PPP Loan Guidance: What You Need To Know And FAQs
On June 22 the Small Business Administration (SBA) issued new Interim Final Rules (IFR) on the recently passed Paycheck Protection Program Flexibility Act (PPPFA), clarifying some issues and attempting to make complete loan forgiveness attainable for most borrowers.
The new changes would:
• Lower to 60% from 75% the minimum portion of the PPP loan that must be spent on payroll. The rest must be spent on rent, utilities and other business-related expenses.
• Extend from eight to 24 weeks the amount of time the loan can cover.
• Extend from two to five years the time new PPP loans must be paid back if the amount provided doesn’t convert into a grant.