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SBA issues additional PPP guidance; NAFCU webinar to give detailed program overview
Amid the reopening of the paycheck protection program (PPP) portal, the Small Business Administration (SBA) – in consultation with the Treasury Department – continues to release additional updates and guidance for lenders that credit unions should be aware of.
Here are the most recent PPP program notices released by the SBA:
- PPP Borrower Resubmissions of Loan Forgiveness Applications Using Form 3508S, Lender Notice Responsibilities to PPP Borrowers, and Offset of Remittances to Lender for Lender Debts: This procedural notice covers the process for borrower resubmission of loan forgiveness applications using PPP loan forgiveness application form 3508S, as well as lender responsibilities to notify borrowers of a number of specific issues and lender responsibilities in the event of offset of PPP remittances to lenders by the Treasury Offset Program.
- Paycheck Protection Program Excess Loan Amount Errors: This procedural notice covers excess loan amount errors made by borrowers or lenders when completing the PPP borrower application form or the PPP lender application form for first- and second- draw loans.
- How to Calculate First Draw PPP Loan Amounts: The SBA issued a breakdown of how borrowers can calculate the maximum amount they may take out for a first draw loan, including the necessary documentation applicants must provide. The notice also details the calculation for each type of borrower.
- Second Draw Paycheck Protection Program (PPP) Loans: How to Calculate Revenue Reduction and Maximum Loan Amounts Including What Documentation to Provide: Under this notice, the SBA provides additional guidance on the calculation of a revenue reduction for second draw loans and elaborates on the documentation that applicants must provide to substantiate the 25 percent revenue reduction.
Relatedly, a NAFCU webinar tomorrow will provide a detailed overview of all of the recent changes to the PPP and discuss key issues to consider when originating first- and second-draw loans, as well as loan increases. While the webinar is complimentary, attendees must register in advance. Learn more and register.
NAFCU has also updated its PPP FAQs to include new sections related to first- and second-draw PPP loans. Access all of the association's coronavirus resources here. Additional information on the paycheck protection program is available on the SBA's website and Treasury Department's website.