pay loan PPP Timeline
03.31.20 Paycheck Protection Program
SBA releases Paycheck Protection Program (“PPP”) general guidance for lenders and borrowers on the agency’s website. U.S. Treasury (“Treasury”) releases one-page overview of the PPP.
04.02.20 Interim Final Rule
SBA releases Interim Final Rule (“IFR”) on PPP key provisions (published in the Federal Register on April 15, 2020). Includes authorized uses for funds, the 75% requirement for funds to be used on payroll expenses, details on the loan forgiveness process, and qualifications for lenders and borrowers. Incorporates the ineligible business list from the 7(a) loan program.
04.03.20 FAQs, Affiliation Rules, Borrower Application, and FinCEN Guidance
SBA and Treasury release first PPP FAQs (Question 1). Addresses the borrower’s responsibility to provide accurate payroll costs and expects lenders to use a good faith review.
SBA releases Affiliation rules for the Paycheck Protection Program describing four tests for affiliation based on control and determination of number of employees based on affiliates for eligibility for the PPP.
SBA releases updated borrower loan application form. Reduces certain certifications for owners of the applicant, including the criminal background certification. No longer requires all owners to certify to the application.
FinCEN issues guidance on BSA obligations during COVID-19 (references PPP)04.04.20 Second Interim Final Rule
SBA releases second IFR supplementing initial IFR with additional guidance regarding the application of certain affiliate rules. Rules provide further guidance on affiliation and allows for certain faith based organizations to apply for the PPP.
04.06.20 FAQs #2-18
SBA and Treasury release second PPP FAQs (Questions 2-18). Provides information on the size requirement for PPP eligibility and state that the lender is under no duty to confirm affiliation status of the applicant. Includes information on the $100,000 salary cap, sick leave, and other payroll expenses used to determine the maximum loan amount as well as other questions related to the borrower application. States that applicants must exclude independent contractors from payroll expenses. This FAQ states that the new questions do not affect applicants who applied before this FAQ was published and that applicants may rely on the laws, rules, and guidance available at the time of the relevant application.
04.08.20 FAQs #19-20
SBA and Treasury release third PPP FAQs (Questions 19-20). Allows the lender to use their own promissory note or use the SBA provided note. Also states that the eight-week forgiveness period begins on the first disbursement of the PPP loan, and states the lender must disburse the funds within 10 days of loan approval. SBA releases new lender application form.
04.09.20 Federal Reserve Announcement and Third Interim Final Rule
Federal Reserve announces PPP Liquidity Facility (“PPPLF”) to bolster the effectiveness of the PPP and releases the PPPLF Term Sheet. Interagency interim final rule released to neutralize capital effects for participating in PPPLF.
04.13.20 FAQ #21-25
SBA and Treasury release another set of PPP FAQs (Questions 21-25). Includes information on SBA loan authorization, non-bank lender eligibility, and maximum loan amount caps and affiliation rules for franchises, hotels, and restaurants. Also includes lender’s obligation to require information on applicant’s ownership.
04.14.20 FAQ #26-28
04.15.20 FAQ #29, Federal Reserve Announcement, and Faith Based Org FAQ
SBA and Treasury release another set of PPP FAQs (Question 29). Allows lenders to use scanned copies of documents and e-sign for loan applications.
Federal Reserve Board announces rule change to bolster effectiveness of SBA’s PPP. Temporarily modifies Section 22(h) of the Federal Reserve Act and Regulation O requirements to allow banks to make PPP loans to businesses owned by their directors and certain shareholders, subject to certain limits and without favoritism.
SBA and Treasury release another set of PPP FAQs addressing faith-based organizations and application that are affiliated with faith-based organizations.
04.16.20 PPP Runs Out of Funding and Federal Reserve Announcement
SBA releases IFR with guidance on self-employed individuals and addressing eligibility issues for business concerns and requirements for pledges of PPP loans. Includes interested bank director guidance.
PPP runs out of funding, SBA closes E-Tran system Federal Reserve announces the PPPLF is fully operational. Federal Reserve Banks begin accepting applications and ready to accept pledges of PPP loans on Monday, April 17, 2020.
04.17.20 FAQ #30
SBA and Treasury release another set of PPP FAQs (Question 30). Addresses that lenders may sell PPP loans into the secondary market without SBA prior approval.
04.23.20 FAQ #31
SBA and Treasury release another set of PPP FAQs (Question 31). Adds a safe harbor for borrowers that return funds prior to May 7, 2020. SBA adds a new “adequate liquidity” test for all applicants of PPP loans to assess other forms of liquidity when making the Economic Necessity Self Certification. Initially addresses applicants owned by large companies. Lenders may rely on borrower’s self-certification and do not need to investigate.
04.24.20 Health Care Enhancement Act, Fourth Interim Final Rule, Fifth Interim Final Rule, Calculation Guidance
Paycheck Protection Program and Health Care Enhancement Act signed into law, adding an additional $310 billion to the PPP with no less than $30 billion reserved for lenders with less than $10 billion in assets and an additional no less than $30 billion for lenders with between $10 billion and $50 billion in assets.
SBA and Treasury release another set of PPP FAQs (Questions 32-35). Includes additional information for payroll costs for housing stipends, principal place of reside for employees, and information on eligibility for agricultural applicants.
SBA releases IFR on requirements for promissory notes, authorizations, affiliation, and borrower eligibility. Provides that lenders may use own promissory note and that lenders do not need a separate SBA Authorization for the SBA to guarantee a PPP loan. Clarifies that hedge funds are ineligible to participate, describes how eligibility for portfolio companies of private equity funds is based on affiliation rules, and establishes that hospitals owned by governmental entities may be eligible for PPP loans if they are otherwise eligible.
SBA releases IFR on calculating loan amounts for seasonal businesses. Provides seasonal employers with an additional option of using any consecutive 12-week period between May 1, 2019 and September 15, 2019 for determining the maximum loan amount.
SBA and Treasury release guidance on how to calculate maximum loan amounts by business type.
04.25.20 Department of Agriculture FAQ
SBA and Treasury release first PPP FAQs (Question 1). Addresses the borrower’s responsibility to provide accurate payroll costs and expects lenders to use a good faith review.
SBA releases Affiliation rules for the Paycheck Protection Program describing four tests for affiliation based on control and determination of number of employees based on affiliates for eligibility for the PPP.
SBA releases updated borrower loan application form. Reduces certain certifications for owners of the applicant, including the criminal background certification. No longer requires all owners to certify to the application.
FinCEN issues guidance on BSA obligations during COVID-19 (references PPP)04.26.20 FAQ #32-35
SBA releases second IFR supplementing initial IFR with additional guidance regarding the application of certain affiliate rules. Rules provide further guidance on affiliation and allows for certain faith based organizations to apply for the PPP.
04.27.20 Comptroller Letter
SBA and Treasury release second PPP FAQs (Questions 2-18). Provides information on the size requirement for PPP eligibility and state that the lender is under no duty to confirm affiliation status of the applicant. Includes information on the $100,000 salary cap, sick leave, and other payroll expenses used to determine the maximum loan amount as well as other questions related to the borrower application. States that applicants must exclude independent contractors from payroll expenses. This FAQ states that the new questions do not affect applicants who applied before this FAQ was published and that applicants may rely on the laws, rules, and guidance available at the time of the relevant application.
04.28.20 Sixth Interim Final Rule, FAQ #37, SBA and Treasury Joint Statement
SBA and Treasury release third PPP FAQs (Questions 19-20). Allows the lender to use their own promissory note or use the SBA provided note. Also states that the eight-week forgiveness period begins on the first disbursement of the PPP loan, and states the lender must disburse the funds within 10 days of loan approval. SBA releases new lender application form.
04.29.20 FAQ #38-39
SBA and Treasury release another set of PPP FAQs (Questions 38-39). Expands on the “in operation on February 15, 2020” qualification for mergers and asset sales of companies and discusses the SBA’s ability to personally review PPP applications. The SBA will review all loan applications above $2 million in addition to other loans as deemed appropriate by the SBA.
04.30.20 Seventh Interim Final Rule
SBA releases IFR on maximum PPP loans for corporate groups, as well as eligibility requirements for non-bank and non-insured depository lenders. Provides that the maximum loan amount for corporate groups is limited to $20 million.
05.01.20 SBA Guidance on PPP Loans Sales and IRS Guidance
SBA releases guidance on Whole Loans Sales of PPP Loans permitting any lender participating in the PPP to sell PPP loans to other participating lenders without the SBA’s prior written consent for the Guaranty to transfer. This guidance changes the general requirement in the SBA’s Loan Guarantee Agreements that the SBA must provide prior consent for the sale or transfer of loans. Note that the guidance contains an expiration date of May 1, 2021.
IRS issues guidance that forgiven portion of PPP loans is not included in borrowers gross income.
05.03.20 FAQ #40- 42
SBA and Treasury release another set of PPP FAQs (Question 40). Provides that the SBA and Treasury will release a new IFR providing that employees who were laid off that decline an offer to be rehired will not be included for the forgiveness calculations (subject to proper documentation). Question 41 confirms applicants who rely on the Seasonal Guidance IFR posted on April 24, 2020 may still make all certifications in the Borrower Application Form. Question 42 expands “non-profit” to include hospitals under Section 115 of the Internal Revenue Code if the hospital has a written record stating it would otherwise qualify under 501(c)(3).
05.05.20 FAQ #43- 44 and Eighth Interim Final Rule
Nondiscrimination adn Additional Eligibility Criteria
05.06.20 FAQ #45
Is an employer that repays its PPP loan by the safe harbor deadline (May 14, 2020) eligible for the Employee Retention Credit?
05.13.20 FAQ #46-47
SBA releases Paycheck Protection Program (“PPP”) general guidance for lenders and borrowers on the agency’s website. U.S. Treasury (“Treasury”) releases one-page overview of the PPP.
05.19.20 FAQ #48
Addresses the deadline for lenders to complete the initial SBA Form.
05.19.20 Ninth Interim Final Rule
Extension of Limited Safe Harbor with Respect to Certification Concerning Need for PPP Loan Request
05.19.20 Tenth Interim Final rule
Business Loan Program Temporary Changes; Paycheck Protection Program – Loan Increases
05.19.20 Eleventh Interim Final rule
Eligibility of Certain Electric Cooperatives
05.21.20 Twelfth Interim Final rule
Paycheck Protection Program – Treatment of Entities with Foreign Affiliates
05.26.20 Thirteenth Interim Final rule
Extension of Limited Safe Harbor with Respect to Certification Concerning Need for PPP Loan and Lender Reporting
05.30.20 Fourteenth Interim Final rule
Interim Final Rule on Forgiveness
05.30.20 Fifteenth Interim Final rule
Loan Review Procedures and Related Borrower Responsibilities
06.05.20 Sixteenth Interim Final rule
Eligibility of Certain Telephone Cooperatives
06.10.20 Seventeenth Interim Final rule
Revisions on First Interim Final Rule
06.17.20 Eighteenth Interim Final rule
Additional revisions on the First Interim Final Rule
06.19.20 Nineteenth Interim Final rule
Revisions on the Third and Sixth Interim Final Rule
06.22.20 Twentieth Interim Final rule
Revisions to the Loan Forgiveness Interim Final Rule and SBA Loan Review Procedures Interim Final Rule
06.24.20 Twenty-first Interim Final Rule
Removes additional eligibility restrictions for PPP applicants with criminal histories. Adjusts applicant ineligible if any 20% or more owner of equity in applicant.
06.24.20 Revised Application Forms Released
Revised borrower and lender applications released.
06.25.20 Twenty-second Interim Final Rule
Clarified certain eligible payroll costs (fishing boat owners.)
07.04.20 PPP Extended to August 8th
President signed S. 4116 into law, extending PPP to August 8th.
08.12.20 Twenty Third Interim Final Rule
Informing PPP borrowers and lenders of the process for a PPP borrowe to appeal SBA PPP loan review decisions to SBA's Office of Hearings and Appeals.
08.24.20 Twenty Fourth Interim Final Rule
Treatment of Owners and Forgiveness of Certain Nonpayroll Costs.
10.08.20 Twenty Fifth Interim Final Rule
Additional Revisions to Loan Forgiveness and Loan Review Procedures.
01.06.21 Twenty Sixth Interim Final Rule
Paycheck Protection Program as amended by Economic Aid Act.
01.06.21 Twenty Seventh Interim Final Rule
Interim Final Rule on Second Draw Loans.