Greenspoon Marder Client Alert: June 30 Deadline For New PPP Loan Applications; No New EIDL Loans
Jun 15, 2020
On Thursday, June 12th, Treasury posted the draft IFR implementing the recent legislative
changes to the PPP loan program #PPPloan under the CARES Act #CARESAct. The changes to do not extend the June 30th deadline for applications for PPP loans and there are funds still available. On June 6th, SBA reported that $130 billion remained for disbursements by banks. Not all banks are still offering PPP loans but many are still processing applications.
New borrowers are eligible for the new provisions set out in the Flexibility Act, which include a 5 year term; 24 weeks spending coverage for loan forgiveness; non payroll allowed up to 40% for forgiveness.
SBA is still not taking new applications for EIDL loans. When EIDL loans again become available, PPP borrowers are eligible to apply. The June 12th IFR clarified that if an EIDL loan is used for payroll costs, the PPP loan must be used to refinance the EIDL loan.
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