SBA Issues New Guidelines for PPP Loan Forgiveness

Late last Friday the SBA and Treasury issued more guidance for the Paycheck Protection Program; the latest interim final rule focused on the requirements for loan forgiveness and the responsibilities of lenders during the forgiveness program; banks will be required to issue decisions on borrowers’ forgiveness applications within 60 days after receiving them and then the SBA said it would pay the lenders within 90 days; also lenders will lose any fees for loans that the SBA deemed ineligible and could even claw back fees that have already been paid; this was not received enthusiastically by bankers as you can imagine with the CEO of one community bank stating, “They had us make a bunch of loans to businesses that don’t qualify with the old ‘don’t worry’ and now it’s on us.” American Banker

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