WASHINGTON—The Small Business Administration (SBA) and Treasury Department have updated their FAQs related to the Paycheck Protection Program (PPP) to clarify forgiveness for businesses that have laid off an employee.
Under Question 43, if the business previously laid off an employee, offered to re-hire, but the employee declined the offer, the borrower's forgiveness amount will not be reduced. Additionally, the SBA is extending the safe harbor repayment period for those business that did not obtain the loan in good faith until May 14.
The SBA has also released information on Round Two loan activity for the program, revealing that the agency has guaranteed more than two million loans. Of those loans, 919,087 were submitted by financial institutions with less than $10 billion in assets.
In addition, the CFPB has released three clarifying FAQs regarding lender notices required under the Equal Credit Opportunity Act and Regulation B to small businesses that have applied for PPP loans. The FAQs also indicate that a creditor cannot deny a loan application based on incompleteness where there is enough information for a credit decision.
NAFCU is offering a free webinar Friday to review what will be required from borrowers and credit unions during the forgiveness process of the PPP and discuss the SBA's current plan for borrower audits.