(From June 26th) – MPL General Counsel Corner – PPP Forgiveness moves to be more business friendly
I hope the week has gone as best as can be expected. More PPP updates have come out from the Treasury Dept. If anything, the optional expansion of up to 24 weeks from 8 weeks, along with the 60% threshold provides more flexibility and makes the program more friendly to businesses.
Below are the links to the various updates if you would like to add to your weekend reading list. FYI, as of this morning, it looks like the Treasury PPP site is being updated (i.e., the links may not be live when you click on them)
- Guidance on Refinance of EIDL Loans with PPP Loan Proceeds and Lender Remittance of EIDL Refinance Proceeds to SBA
- Updated PPP FAQ – Essentially it restates the 5-year terms for loans processed after 6/5 and says that a lender and borrower can mutually agree to change the term to 5 years for loans processed prior to 6/5.
- Interim Final Rule on Revisions to Loan Forgiveness Interim Final Rule and SBA Loan Review Procedures Interim Final Rule – This is the big update that also includes the ability to use 24 weeks.
- Interim Final Rule on Additional Eligibility Revisions to First Interim Final Rule
- Interim Final Rule on Certain Eligible Payroll Costs
- Updated Borrower Application Form (6/24)
The NFIB webinar from earlier this week also provided a nice overview of maximizing PPP loan forgiveness.
Here are some other things that may be important or relevant for you:
- Virus pummels commercial real estate, could end long boom – What’s on the horizon: a recovery, a continued downturn or a shift in the places that people work?
- More recovery news for the housing market: May saw a 13% y/y jump in new home sales. Note the Southern and the Western parts of the US experienced some of the biggest increases. Could people be relocating because of the ability to telecommute?
- Coronavirus Regulations – A State by State Week in Review provided by Law360
- PPP Funds Availability through 6/20/2020 is still about $128B. If you need the funds, please reach out to your lender.
- PA has established a new website for its small business grant program. The criteria are listed below:
- Must be physically located and certified to do business in PA
- Must generate at least 51% of revenue in PA
- Must have <$1m in revenue prior to the Covid crisis
- Must have <25 employees prior to 2/15/2020
- Upcoming Webinars and Helpful Resources