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SBA Issues New PPP Application Forms for Borrowers and Lenders
Practical Law Legal Update w-029-9962 (Approx. 4 pages)
SBA Issues New PPP Application Forms for Borrowers and Lenders
by Practical Law Finance
| Published on 04 Mar 2021 • USA (National/Federal) |
The Small Business Administration (SBA) issued new or revised Paycheck Protection Program (PPP) application forms for PPP borrowers and lenders. The new forms relate to an SBA interim final rule (IFR) that allows self-employed individuals to use gross income to calculate their PPP loan amount. The IFR also permits business owners who have a non-financial fraud felony conviction in the past year or are delinquent or in default on their Federal student loans to be eligible for PPP loans.
On March 27, 2020, the US government passed the CARES Act in response to the COVID-19 crisis. Under the CARES Act, the Small Business Administration (SBA) is offering loans under the Paycheck Protection Program (PPP). The SBA has issued numerous interim final rules outlining the key provisions for implementing the PPP. For more information, see Practice Notes, Road Map to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act): Paycheck Protection Program and Road Map to the Consolidated Appropriations Act, 2021: Paycheck Protection Program.
On March 3, 2021, the SBA issued the following new or revised borrower and lender application forms for PPP loans:
The application forms relate to a new interim final rule issued on March 3, 2021, which:
- Allows self-employed individuals who file Form 1040, Schedule C, Profit or Loss From Business to calculate their maximum loan amount using gross income instead of net profit.
- Removes the eligibility restriction that prevents businesses with owners:
- who have non-financial fraud felony convictions in the past year from obtaining PPP loans; and
- who are delinquent or in default on their Federal student loans from obtaining PPP loans.