On Jan. 19, the Small Business Administration released an interim final rule regarding loan forgiveness requirements and loan review procedures as amended by the Economic Aid Act, which was signed into law Dec. 27, 2020, related to the Paycheck Protection Program.
This interim final rule consolidates or conforms 10 previous rules related to forgiveness and reviews of PPP loans and incorporates changes made by the Economic Aid Act, including forgiveness of second draw loans. Much of the rule restates existing regulatory provisions along with those amended by the Economic Aid Act. Provisions addressed include eligible payroll costs and eligible forgivable expenses; changes in employment; rules governing PPP loans to elected officials; and what the SBA review process entails.
