SBA Interim Rule for Paycheck Protection Program
Attached is the Interim Final Rule by the Small Business Administration on Business Loan Program Temporary Changes; Paycheck Protection Program. This rule clarifies and provides some important details, including:
— a helpful step-by-step process for applicants to compute the maximum amount they are eligible for;
— more details on the documentation that must be provided to the lender;
— SBA will “hold harmless” any bank that relies on borrower documents and attestations (banks wanted this); and
— 1.00 percent interest rate rather than the earlier-announced 0.50%. Small lenders complained 0.50% was too low.
Most banks haven’t started accepting loan applications today, however, now that rule is published in the Federal Register its likely to open the doors early next week. The money will be first-come-first-served so that banks have an incentive to start accepting applications as quickly as possible.