Congress passed $310 billion of additional funding with the second round of Payroll Protection Program (PPP) monies for small businesses. The Small Business Administration (SBA) resumed funding on Monday, April 27, 2020 at 10:30 a.m. EDT. The entire package totaled $484 billion with an additional $310 billion of funding for the PPP. The first round of $349 billion was expended in less than two weeks and the second round is expected to go even quicker. There are several hot topics in the news concerning the PPP loans. Loan forgiveness tops the list and final guidelines were set to be out by April 27, but as of today, final guidance has yet to be issued.
Another item leading the news is the May 7 deadline for borrowers to repay PPP funds if they cannot certify the PPP funds received were “necessary” to support ongoing operations. While “necessary” has yet to be defined by the SBA, early indications are that these amounts will be audited or certified by the banks or third parties, and deviations from normal operating procedures may be scrutinized. Borrowers should be aware of the fines, penalties and possible imprisonment that accompany any misuse or fraud related to these loans.
Please visit the Updated Q & A if you have further questions and the Rules and Regulations for information explaining this funding.