D. Nicole Lovell, Craig R. Cockrell, Josh Hallenbeck
Banking, Business, Coronavirus (COVID-19)
The Paycheck Protection Program (the “PPP”) established under the Coronavirus Aid, Relief and Economic Security (CARES) Act authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. We have published information on PPP here.
The U.S. Small Business Administration (SBA) is continuing to issue guidance on the PPP by updating the Frequently Asked Questions for Lenders and Borrowers. Among other items, these FAQs clarify that approved loans under the PPP shall be funded within ten (10) days of loan approval. This is important because the amount of forgiveness of a PPP loan is based on the borrower’s payroll costs over the 8-week period following the first disbursement of the PPP loan to the borrower. The updated FAQs can be found here.
As the SBA is issuing almost daily updates on their guidance for lenders and borrowers alike, we will continue to monitor this issue and provide updates.