[PPP] Loan’s 60% cliff concern resolved, 6.15.20

According to the National Restaurant Association, new guidance reflecting the Payroll Protection Program Flexibility Act was issued by the U.S. Small Business Administration and U.S. Department of Treasury on June 11.

Interim Final Rule on Revisions to First Interim Final Rule

These regulations are consistent with its understanding of the Paycheck Protection Program Flexibility Act and favorably resolves the 60% cliff concern, the National Restaurant Association said.

• There is no 60% cliff that could have invalidated loan forgiveness
• Borrowers can choose an eight-week period (if receiving the loan before June 5) or the 24-week period

Stay tuned – more guidance will be coming soon on Paycheck Protection Program loan forgiveness.