The U.S. Small Business Administration (SBA) and the US Treasury answered additional questions this week, related to forgiveness of Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL). An interim final rule was also issued, that deals with the process if borrowers want to appeal certain SBA loan decisions.
- Permit vision and dental benefits to be included in the group health care benefits and insurance premiums that may be paid with PPP funds
- Indicate that fees of an agent or other third party are not material to the SBA’s guarantee of a PPP loan, or to the SBA’s payment of fees to lenders
- Outline how a lender can confirm the amount of any EIDL advance that will automatically be deducted by the SBA from a PPP loan forgiveness amount, in cases where a borrower received both PPP and EIDL funds.
- Instructs lenders how to handle any remaining balance due on a PPP loan, after the SBA remits the forgiveness amount to the lender.
- Describe what a lender should do if a borrower received an EIDL advance in excess of the amount of their PPP loan.
The new interim final rule establishes review procedures, including:
- A PPP borrower may request a review of a lender or SBA decision that a borrower is ineligible for loan forgiveness
- Documentation requirements, time limits and a walk-through of the processes.