[PPP] New interim final rules allow some loan flexibility, 5.22.20

The American Hotel & Lodging Association said the U.S. Department of Treasury and the U.S. Small Business Administration on May 22 issued the long-awaited guidance on Paycheck Protection Program (PPP) loan forgiveness. An interim final rule was released to allow some flexibility under the assumption that Congress will ultimately change the PPP through law.

This guidance explains how PPP borrowers can apply for loan forgiveness, the national association said. Essentially, each borrower must fill out a separate application form (SBA FORM 3508) and submit it to their lender who will then send the loan forgiveness application to the SBA.The SBA Form 3508 walks the borrower through how to calculate their loan forgiveness amount and what costs that are eligible for forgiveness (which includes the 75/25 ratio – see bottom of page 2 of SBA Form 3508).

• Interim Final Rule on SBA Loan Review Procedures and Related Borrower and Lender Responsibilities (5/22/20)
• Lender Processing Fee Payment and 1502 Reporting Process (Effective 5/21/20)
• Interim Final Rule on Second Extension of Limited Safe Harbor with Respect to Certification Concerning Need for PPP Loan and Lender Reporting (5/20/20)
• FAQ (Last Updated 5/19/20)

For more information and updates, visit Treasury.gov/CARES and SBA.gov/PaycheckProtection