Late Friday night, SBA issued two new interim final rules on the PPP program. The first one on loan review procedures and related borrower and lender responsibilities contains primarily new, important information related to the forgiveness process, lender’s responsibilities when reviewing forgiveness applications, and SBA’s authority to review loans.
This new 19-page IFR can be found HERE.
The second interim final rule on forgiveness contains some new information; however also finalizes in a rule form much of the information found in the new forgiveness application and prior Treasury FAQs that were previously issued. One new helpful FAQ is related to whether bonus pay or hazard pay during the 8-week covered period may be included in the definition of “payroll costs.” SBA states that it has also determined that, if an employee’s total compensation does not exceed $100,000 on an annualized basis, the employee’s hazard pay and bonuses are eligible for loan forgiveness because they constitute a supplement to salary or wages, and are thus a similar form of compensation.
This new 26-page IFR can be found HERE.
WBA will update its Master PPP FAQs to incorporate this new guidance and publish them on its website. WBA will also continue to keep members apprised of new developments as they continue to occur.