On August 11, 2020, the Small Business Administration (the “SBA”) issued Frequently Asked Questions (“FAQs”) pertaining to PPP Loans and PPP Loan Forgiveness. 

The newly released PPP Loan FAQs cover:

• Payment or nonpayment of fees of an agent or third party is not material to SBA’s guarantee of a PPP Loan or to SBA’s payment of fees to lenders
• Payments required for the provision of group health care benefits, including insurance premiums, include vision and dental benefits

The newly released PPP Loan Forgiveness FAQs cover:

• An Economic Injury Disaster Loan (EIDL) advance will be deducted from a Borrower’s Loan forgiveness amount
• Repayment of PPP Loan amounts that are not forgiven
• EIDL advances in excess of the Borrower’s PPP Loan amount will not receive any forgiveness on the PPP Loan

PPP Loan FAQs:  https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf

PPP Loan Forgiveness FAQs:  https://home.treasury.gov/system/files/136/PPP--Loan-Forgiveness-FAQs.pdf

The Attorneys at Levene Gouldin & Thompson, LLP are available to provide advice and counsel concerning these new statutory obligations and other matters related to COVID-19.