Updated PPP FAQ –Update for December 10, 2020
An updated Paycheck Protection Program FAQ addressing SBA Form 3509 and 3510 Loan Necessity Questionnaire is now available: Click here to review the details on the Treasury website. We expect that there will continue to be further guidance, processes, and procedures issued which we will continue to provide updates once available. Visit www.JellumLaw.com for a full archive of PPP announcements and more.
Read moreUpdated SOP 50 53 (2) – SBA Update for December 8, 2020
The U.S. Small Business Administration (SBA) has released SOP 50 53 (2) establishing supervision and enforcement procedures related to SBA lending. The SOP 50 53 (2) will go into effect January 1, 2021, Click here to access the updated SOP on the SBA website. Over the next several weeks, we will highlight the various changes within the SOP. Watch your inbox for more of these newsletters to catch the details. If you have questions about SOP 50 53 (2), please do not hesitate to contact Your SBA Legal Department at Jellum Law
Read moreNew Main Street Lending Program FAQ
As part of our practice, we assist lenders with Federal Main Street Lending Program transactions. Recently, the Federal Reserve issued the following: Updated FAQ, click here to read; Lowered the minimum loan size from $250,000 to $100,000 and changed the fee structure for loans with a principal amount of less than $250,000; Overview explaining the core terms of the program and eligibility criteria for non-profit borrowers, click here for more; and, Monthly report dashboard based on usage and geographic distribution, click here to view. We expect the Federal Reserve to continue issuing new guidance with respect to the Main Street Lending Program, which we will provide as it becomes available.
Read moreSBA IFR on Loan Forgiveness and SBA Form 3508S
The SBA and Treasury released a simplified loan forgiveness application for PPP loans of $50,000 or less To view the IFR on Additional Revisions to Loan Forgiveness and Loan Review Procedures, click here to read. To view SBA Form 3508S for simplified PPP loan forgiveness application, click here To view instructions for completing SBA Form 3508S, click here To view the SBA Press Release on the simplified forgiveness application, click here. Important considerations for this announcement: SBA Form 3508S is a “streamlined” forgiveness application, and should NOT be interpreted as “automatic” forgiveness; SBA Form 3508S may not be used if total PPP loans for the Borrower and its Affiliates is equal to or greater than $2 million; Loans eligible for SBA Form 3508S are not subject to reduction of forgiveness based on reduction of FTE or salaries/wages; and Borrowers and Lenders must still follow all other PPP loan forgiveness guidelines. We expect that there will continue to be further guidance and clarification which we will continue to provide as they become available.
Read moreSBA Procedural Notice 5000-20057
SBA Procedural Notice 5000-20057 on Paycheck Protection Program Loans and Changes of Ownership was recently released by SBA, click here to read. The following are important issues to consider with proposed changes of ownership: Stock Transfer vs. Asset Sale Partial Change of Ownership vs. Full Change of Ownership Review of Purchase Agreement SBA Approval vs. Escrow Accounts Status of PPP Loan Forgiveness Application Use of SBA Loans to Fund Change of Ownership We expect that there will continue to be further guidance and clarification which we will continue to provide as they become available.
Read moreNew PPP FAQ Update for October 8, 2020
New Paycheck Protection Program FAQ released, click here to read. Important Considerations: Notify borrowers of the change to the deferment period; Avoid specific repayment dates in the notice; Adjust internal systems to avoid sending out inaccurate monthly installment invoices; and Once the loan forgiveness process is complete, lenders may then choose to have borrowers complete a formal note modification agreement for any unforgiven PPP loan balance. We expect that there will continue to be further guidance and clarification which we will continue to provide as they become available.
Read more