Tag Archives: SBA

Small Business Administration Releases New Interim Final Rule on PPP Loan Forgiveness

On October 8, 2020, the Small Business Administration (SBA) released a new interim final rule detailing additional revisions to the Paycheck Protection Program (PPP) loan forgiveness process and loan review procedures. In addition, the SBA released Question 52 to its Frequently Asked Questions (FAQs) document on October 7, 2020, which addresses the deferral period for borrower payments of principal, interest and fees.

To read the full text of this Duane Morris Alert, which summarizes the key points from the interim final rule and the update to the FAQs, please visit the firm website.

Small Business Administration Releases Procedural Notice for Businesses Undergoing Changes in Ownership

On October 2, 2020, the Small Business Administration (SBA) released a procedural notice that details the steps that Paycheck Protection Program (PPP) loan borrowers and lenders must take when a borrower is engaging in a transaction in which a change in ownership will occur.

To read the full text of this Duane Morris Alert, which summarizes the key points from the notice and the actions that a PPP loan borrower should take (and a purchaser or investor should ensure the borrower takes) in an M&A transaction, please visit the firm website.

Small Business Administration Releases Guidance on the Appeals Process for Paycheck Protection Program Loans

On August 11, 2020, the Treasury Department and Small Business Administration (SBA) released an interim final rule that details the appeals process for Paycheck Protection Program (PPP) loan borrowers for SBA loan review decisions regarding eligibility and/or forgiveness of a PPP loan. The interim final rule builds upon prior guidance released by the SBA on the review process for lenders and the SBA of PPP loans.

To read the full text of this Duane Morris Alert, please visit the firm website.

Small Business Administration Releases Revised Eligibility Rules for Paycheck Protection Program

On June 24, 2020, the Treasury Department and Small Business Administration released an interim final rule updating eligibility criteria for Paycheck Protection Program (PPP) loans made under the Coronavirus Aid, Relief and Economic Security Act (CARES Act) and the Paycheck Protection Program Flexibility Act.

The June 24 interim final rule loosens the eligibility criteria that applied to owners of 20 percent or more of a PPP loan borrower’s equity, specifically concerning the criminal histories of such owners. In addition, the June 24 interim final rule confirms certain other eligibility criteria that will remain in place.

To read the full text of this Duane Morris Alert, please visit the firm website.

Small Business Administration Releases Rules Following Paycheck Protection Program Flexibility Act

On June 11, 2020, the Treasury Department and Small Business Administration (SBA) released a new interim final rule, which revises the earlier interim final rule released on April 2, 2020, and incorporates revisions to the Paycheck Protection Program (PPP) under the Paycheck Protection Program Flexibility Act signed into law on June 5, 2020.

To read the full text of this Duane Morris Alert, please visit the firm website.

Paycheck Protection Flexibility Act passed by U.S. House of Representatives

The new Paycheck Protection Flexibility Act (H.R. 7010), which focuses on small businesses and restaurants in particular, has passed the U.S. House of Representatives.

The bipartisan Paycheck Protection Flexibility Act,was introduced last week by Reps. Dean Phillips, D-Minnesota and Chip Roy, R-Texas, and is designed to extend the 8-week period under which loan recipients could spend PPP money to 24 weeks while helping correct other provisions that would provide more flexibility to small businesses in the hospitality realm.

To read the full text of this post by Duane Morris partner Brad Molotsky, please visit the Duane Morris Project Development/Infrastructure/P3 Blog.

SBA Releases New Interim Final Rule on Review Procedures and Borrower and Lender Responsibilities for Paycheck Protection Program Loans

On May 22, 2020, the Treasury Department and Small Business Administration (SBA) released a new interim final rule on the SBA’s process for reviewing Paycheck Protection Program (PPP) loans under the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The May 22 interim final rule sets forth procedures relevant to both PPP loan borrowers and lenders in the context of review and audits of PPP loans.

To read the full text of this Duane Morris Alert, please visit the firm website.

SBA Releases Paycheck Protection Program Loan Forgiveness Application

On May 15, 2020, the Treasury Department and Small Business Administration released the Loan Forgiveness Application for the Paycheck Protection Program. Borrowers are required to complete the application and submit it to their lenders in order to apply for loan forgiveness. This Alert discusses the Loan Forgiveness Application, as well as some clarifications regarding the rules for loan forgiveness contained within the application.

To read the full text of this Duane Morris Alert, please visit the firm website.

Prosecution of Reality Television Personality Among First for PPP Fraud

It did not take long. On April 3, 2020, the Small Business Administration began accepting applications for companies to participate in the Paycheck Protection Program (“PPP”). By early May, the first criminal charges began to roll in. The most attention-getting of these was filed against Maurice Fayne, better known as “Arkansas Mo” from the VH1 reality television show “Love & Hip Hop: Atlanta.”

To read the full post by Duane Morris attorney Brett Feldman, please visit the Duane Morris White-Collar Criminal Law Blog.

SBA Further Clarifies Economic Necessity Certification and Audit Procedures for Paycheck Protection Program Loans

On May 13, 2020, the Treasury Department and Small Business Administration (SBA) released Question 46 of the FAQ sheet, which addresses how the SBA will review the need certification required for Paycheck Protection Program (PPP) loans.

To read the full text of this Duane Morris Alert, please visit the firm website.