SBA Publishes an Interim Final Rule on Business Loan Program Temporary Changes: Paycheck Protection Program

On April 15, 2020, the U.S. Small Business Administration (SBA) published an interim final rule for the implementation of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act or the Act). The  CARES Act temporarily adds a new product, titled the “Paycheck Protection Program,” to SBA’s 7(a) Loan Program.  It provides for forgiveness of up to the full principal amount of qualifying loans guaranteed under the Paycheck Protection Program in order to provide economic relief to small businesses nationwide adversely impacted by COVID-19. This interim final rule outlines formal guidance and requests public comment.

Comments are due on May 15, 2020. 

This interim final rule is effective April 15, 2020.

This interim final rule applies to applications submitted under the Paycheck Protection Program through June 30, 2020, or until funds made available for this purpose are exhausted. Even though this rule is already effective, SBA may use information from public comments to identify issues and make corrections in the rule, if necessary.

Read the notice at 2020-07672. Submit comments at https://www.regulations.gov/comment?D=SBA-2020-0015-0001

Advocacy contact: Jennifer A. Smith at Jennifer.Smith@sba.gov.