The SBA released a new Interim Final Rule (IFR) #20, entitled Revisions to Loan Forgiveness Interim Final Rule and SBA Loan Review Procedures Interim Final Rule. Here are some select highlights of the IFR pertaining to your PPP loan.
- Extends loan maturity from 2 years to 5 years for loans approved by SBA on or after June 5, 2020 and when mutually agreed to by Lender and Borrower for loans approved by SBA prior to that date.
- Changes the maximum percentage of a forgiveness amount that can be approved for nonpayroll costs from 25% to 40%.
- Extends the Covered Period from original 8 weeks to 24 weeks but allows borrowers with loans approved prior to June 5, 2020 to continue to use the original 8-week Covered Period if they choose.
- Extends deferral period from 6 to 10 months after the last day of the Covered Period.
- Please review the full Interim Final Rule (IFR) #20 for complete details and updates surrounding PPP forgiveness.