Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza issued a joint statement today that clarifies how the SBA will interpret the new PPP legislation signed into law by the President on Friday.
60% Payroll Cost Test
The wording of the legislation suggested that a borrower would not receive loan forgiveness if it did not spend at least 60% of the loan proceeds on payroll costs. The joint statement clarifies that borrowers would still receive partial loan forgiveness similar the original SBA rule with the 75% test.
June 30 is Last Day that a PPP Loan Application Can Be Approved
The SBA will not approve any new loan applications after June 30.
SBA Will Issue New Forms
The SBA will issue new forms for both loan forgiveness and for new loan applications.
The SBA Will Issue Further Guidance
The joint statement promises that the SBA will issue further guidance on the new legislation.
If you have any questions about PPP loans and this development, reach out to us at 303-989-7600.