Department of the Treasury Issues PPP Interim Final Rule

Yesterday, the Treasury Department issued the Paycheck Protection Program Interim Final Rule. This new document includes some significant changes along with clarifications to the original bill. While the rule provides greater direction for banks processing these loan applications, there are several points to take note of if you’re planning to apply:
 

  • Funds will be granted on a first-come-first served basis. Apply as soon as possible.

  • Eligibility- Most businesses with under 500 employees are eligible, including many tax-exempt organizations. Self-employed individuals and independent contractors may be eligible as well.

  • Borrowers may only apply once. Therefore, we recommend working with your banking team to maximize your loan amount.

  • While interest will accrue on the loan during the 6 month deferment, loan forgiveness may offset it.

  • Loan forgiveness- Borrowers will not be responsible for any loan payment if the borrower uses all of the loan proceeds for forgiveable purposes as described in the final rule.

 
These are some of the more relevant points for potential applicants and borrowers. Visit the Department of the Treasury website for more information, including the full text of the interim final rule. Many banks are still developing their procedures for processing these applications, and it’s essential that businesses work directly with their banking teams. For more information on the Paycheck Protection Program, including the application and supporting documents, read this article  Paycheck Protection Program Applications are Now Available.

We know that things are happening quickly and a lot of new information is coming out daily. Know that the team at Livingston & Haynes is always here to provide guidance. We’ll be forming a CARES Act response team in the coming days to better support our individual and small business clients as we all work together to recover from this crisis. In the meantime, please don’t hesitate to reach out with questions or concerns. 

Our Response to COVID-19Steven Haynes