Paycheck Protection Program and other
CARES Act Information
The SBA is now accepting Paycheck Protection Program applications from participating lenders until August 8, 2020 at 11:59 p.m. EDT. NASBP will provide updates as they occur.
The SBA has released the following notice reminding Paycheck Protection Program lenders that under current law, SBA will not be able to process any new PPP loan applications as of Saturday, August 8, 2020 at 11:59 p.m. EDT. At that time, PPP lenders will no longer be able to load PPP applications into the Capital Access Financial System (i.e. CAFS, E-Tran, or the Lender Gateway).
Update August 4, 2020: The SBA and Treasury have released additional guidance:
Update July 23, 2020: The SBA has released the following:
Update July 13, 2020: The SBA and Treasury have released additional guidance:
- Updated Paycheck Protection Program Lender Processing Fee Payment and 1502 Reporting Process (Released July 13, 2020)
- Please note this time-sensitive provision on page 9 of the updated 1502 procedural notice: “After a Lender reports a loan as fully disbursed, the Lender must submit monthly PPP 1502 reports on or before the 15th of each month, or if the 15th is not a business day, on the next business day after the 15th. The first monthly PPP 1502 report is due on or before July 15, 2020, however, Lenders are permitted a 2 day grace period to report for this month only.”
Update July 6, 2020: The U.S. Small Business Administration, in consultation with the Treasury Department, today announced it was releasing detailed loan-level data regarding the loans made under the Paycheck Protection Program (PPP). This disclosure covers each of the 4.9 million PPP loans that have been made.
See the breakdown of PPP Loan Data here, and read this list of things to keep in mind when reviewing the data.
Update June 29, 2020: The Summary of PPP lending as of 6/27/20 has been posted to the SBA website.
Update June 26, 2020: SBA and Treasury released additional guidance on How to Calculate Loan Amounts. Note the new question #10 on calculations for new self-employed individuals and revised questions 1, 2, 4, 5, 6, and 7 to reflect the PPPFA.
Update June 25, 2020: The SBA and Treasury have revised the Frequently Asked Questions Document. FAQs #12 and #20 have been been revised. Also updated was the Interim Final Rule—Certain Eligibility Payroll Costs (specifically pertaining to fishing boat owners)
Update June 24, 2020: The SBA and Treasury have released additional eligibility revisions to the First Interim Final Rule. Read the revisions here.
Update June 22, 2020: The SBA and Treasury have released additional revisions to the Loan Forgiveness Interim Final Rule (IFR) and the SBA Loan Review Procedures IFR. Read the revisions here.
Update June 19, 2020: The SBA and the Treasury have agreed with the bipartisan leaders of the U.S. Senate Small Business Committee to make public additional data regarding the PPP.
SBA will disclose the business names, addresses, NAICS codes, zip codes, business type, demographic data, non-profit information, jobs supported, and loan amount ranges as follows:
- $150,000-350,000
- $350,000-1 million
- $1-2 million
- $2-5 million
- $5-10 million
These categories account for nearly 75 percent of the loan dollars approved. For loans below $150,000, totals will be released, aggregated by zip code, by industry, by business type, and by various demographic categories.
For PPP data disclosed to date, including total dollars approved, loan sizes, lender sizes and types, loans approved by state, top lenders, loans by industry sector, and funds remaining, click here.
Update June 19, 2020: SBA releases Procedural Notice 5000-20032 that informs PPP Lenders regarding how loan proceeds must be used to refinance SBA Economic Injury Disaster Loans (EIDL). The notice also informs PPP Lenders of the procedure for remitting to the SBA any PPP loan proceeds designated for the refinance of an EIDL.
Update June 19, 2020: SBA announces dedicated tool for Small Businesses to connect with Community Development Financial Institutions, small asset lenders participating in PPP. Read the press release here, and use the Lender Match tool here.
Update June 17, 2020: SBA and Treasury announce a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act of 2020. Read the press release here.
Update June 12, 2020: SBA and Treasury Announce Revised Guidance Regarding the PPP
Update June 9, 2020: PPP Lending Operations Update:
1. Clarification on 5 year maturity with Flexibility Act:
Based on the enactment of the Paycheck Protection Program Flexibility Act of 2020, the maturity of all loans approved on or after June 5, 2020 will be for 5 years. The SBA E-Tran loan system has been updated to reflect that all loans will automatically reflect the 5 year maturity when submitted and approved. Loans approved and/or funded prior to June 5, 2020 with the 2 year maturity may be extended by the lender and borrower mutually agreeing to a 5 year maturity. Formal guidance on the changes to the CARES Act are forthcoming from SBA.
2. Tips to ensure your financial institution receives PPP processing fees:
- Submit your PPP 1502 report to SBA in accordance with SBA Procedural Notice on 1502 reporting.
- Ensure your ACH information (including routing transmittal number (RTN)) is correctly reflected in the FTA Lender Portal (see the above Procedural Notice for instructions).
- Check the 1502 Dashboard frequently for any errors that must be corrected.
Question-specific resources available to all PPP lenders:
- Submitting 1502 reports: contact the FTA at mailto:info@colsonservices.com or at 877-245-6159;
- Setting up CAFS account: contact mailto:CLS@sba.gov;
- For other questions: please send an email to mailto:7aQuestions@sba.gov.
Update June 8, 2020: SBA Administrator Jovita Carranza and U.S. Treasury Secretary Steven T. Mnuchin have put out a joint statement regarding enactment of the Paycheck Protection Program Flexibilty Act.
Provisions include:
- Lower the requirements that 75 percent of a borrower’s loan proceeds must be used for payroll costs and that 75 percent of the loan forgiveness amount must have been spent on payroll costs during the 24-week loan forgiveness covered period to 60 percent for each of these requirements. If a borrower uses less than 60 percent of the loan amount for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for partial loan forgiveness, subject to at least 60 percent of the loan forgiveness amount having been used for payroll costs.
- Extending the covered period for loan forgiveness from eight weeks after the date of loan disbursement to 24 weeks after the date of loan disbursement.
- Provide a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees for borrowers that are unable to return to the same level of business activity the business was operating at before February 15, 2020, due to compliance with requirements or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to worker or customer safety requirements related to COVID–19.
- Provide a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees, to provide protections for borrowers that are both unable to rehire individuals who were employees of the borrower on February 15, 2020, and unable to hire similarly qualified employees for unfilled positions by December 31, 2020.
- Increase to five years the maturity of PPP loans that are approved by SBA (based on the date SBA assigns a loan number) on or after June 5, 2020.
- Extend the deferral period for borrower payments of principal, interest, and fees on PPP loans to the date that SBA remits the borrower’s loan forgiveness amount to the lender (or, if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period).
- In addition, the new rules will confirm that June 30, 2020, remains the last date on which a PPP loan application can be approved.
Update June 7, 2020: The following PPP information has been posted on SBA’s website:
Update June 5, 2020: SBA & Treasury have recently released additional guidance:
Update June 1, 2020: New PPP information has been posted to the SBA website:
Update May 25, 2020: The Construction Industry Procurement Coalition delivered a letter, which asked for guidance on the PPP loan forgiveness program for small business government contractors.
Update May 22, 2020: SBA & Treasury have recently released additional guidance:
Note: These IFRs are being posted in advance of publication in the Federal Register. The official versions will appear in the Federal Register.
Update May 21, 2020: SBA & Treasury have recently released additional guidance:
- SBA Procedural Notice - Protection Program Lender Processing Fee Payment and 1502 Reporting Process - Read the notice here SBA_Procedural_Notice_5000-20028.pdf
The purpose of this Notice is to inform Paycheck Protection Program (PPP) Lenders of the reporting process through which PPP Lenders will report on PPP loans and collect the processing fee on fully disbursed loans which they are eligible to receive.
Update May 19, 2020: New PPP Information has been posted to the SBA website:
- An updated Frequently Asked Questions Document (Question 48 – Released 5/19/20)
- SBA is extending the deadline for lenders to electronically upload the initial SBA Form 1502 reporting information to the later of: (1) May 29, 2020, or (2) 10 calendar days after disbursement or cancellation of the PPP loan.
Update May 18, 2020: New PPP information has been posted to the SBA website:
Note: This IFR is being posted in advance of publication in the Federal Register. The official version will appear in the Federal Register.
Update May 14, 2020: SBA & Treasury have recently released additional guidance:
Update May 5, 2020: SBA & Treasury have released additional information regarding the Paycheck Protection Program:
New Policy Guidance Effective April 28, 202
New Policy Guidance Effective April 24, 2020—Paycheck Protection Program Interim Final Rule
Report on Paycheck Protection Program Approvals as of April 16, 2020
Funds from this program:
- Can be used for employee salaries under $100,000, paid sick or medical leave, insurance premiums, and mortgage, rent and utility payments;
- Are potentially 100% forgivable if used for the above purposes; and
- Are available to businesses or 501(c)(3) nonprofits with less than 500 employees, including sole-proprietors, independent contractors, and other self-employed individuals
Based on the legislation, it may be helpful for interested business owners to gather the following information about their business:
- 2019 Payroll--including the last 12 months of payroll
- 2019 Employees--1099's for 2019 employees and independent contractors that would otherwise be an employee of your business. (Note: Do NOT include 1099's for services)
- Healthcare Costs--all health insurance premiums paid by the business owner under a group health plan.
- Retirement--your company retirement plan funding paid for by the company.
More information and forms:
NASBP Blogs on this subject:
Private Watchdogs' Attempts to Retroactively Change PPP Loan Eligibility for Government Contractors Face Significant Hurdles Published July 30, 2020
Update on the Ten Things to Know About the PPP Loan Forgiveness Applications Revised July 23, 2020
PPP Applications Extended Until August 8, 2020; Borrower Details Released & Revisions to Forgiveness Application Timing Published July 6, 2020
Early Cases Demonstrate the Justice Department's Commitment to Aggressively Prosecute PPP Loan Fraud Published June 29, 2020
The Risks Are Real: What We Know and Can Predict About CARES Act Financial Fraud Enforcement Published June 26, 2020
DOJ Announces Trio of PPP Fraud Prosecutions Published June 26, 2020
Small Business Administration Releases Additional Paycheck Protection Program Guidance Published June 19, 2020
What to Know for Businesses Completing the Revised PPP Loan Forgiveness Applications Published June 18, 2020
SBA Issues Updated Paycheck Protection Program Loan Forgiveness Application and Issues new "EZ" Application Form Published June 17, 2020
Borrower Beware: Prepare Now to Defend Your Company's PPP Loan from SBA Review or a Possible False Claims Act or Criminal Investigation Published June 15, 2020
Additional Clarification of Paycheck Protection Program Changes Published June 9, 2020
Payroll Protection Program Flexibility Act Provides Employers with More Options Published June 10, 2020
Payroll Protection Program Expanded to Aid Small Business, but Workforce Questions Remain Published June 5, 2020
Major Changes in the Paycheck Protection Program Published June 5, 2020
Legislation Approved to Extend the Covered Period for PPP for PPP Loan Forgiveness and Make Other Significant Changes Published June 4, 2020
Proposed Legislation May Extend Period for PPP Loan Forgiveness—Meanwhile, SBA Releases Yet More Guidance Published May 29, 2020
SBA Issues Promised Good Faith Certification Guidance Published May 13, 2020
SBA Updates "Economic Uncertainy" Certification Guidance Published May 13, 2020
Paycheck Protection Program Loan Good Faith Certification Guidance Updated Published May 13, 2020
What Contractors Need to Know About the Paycheck Protection Program Published May 13, 2020
Paycheck Protection Program Safe Harbor Extended Until May 14, 2020 Published May 6, 2020
Who CARES About My PPP Loan? Everyone. Published May 1, 2020
Paycheck Protection Program: Understanding the Rules and Potential Options May Be Required to Maximize Loan Forgiveness Published April 27 2020
Ineligble PPP Borrowers Granted Safe Harbor Period to Return Money by May 7 Published April 24, 2020
SBA Issues New Guidance Regarding PPP—"Good Faith Rules and What You Should Know" Published April 24, 2020
How to Prepare for Replenishment of the Paycheck Protection Program Funds and EIDL Published April 23, 2020
SBA Issues Paycheck Protection Program Guidance Published March 31, 2020
Paycheck Protection Program Provides Forgivable SBA Loans Published April 1, 2020