On Wednesday, July 28th, the SBA released a new 29-page interim final rule (IFR) that addressed three key points in the PPP forgiveness process. The first being some changes to the appeals process with the SBA’s Office of Hearings and Appeals (OHA). The new IFR allows for deferment of payments on a PPP loan until OHA has issued a final decision as long as the appeal was timely filed with 30 days of the SBA loan review decision.
The other two items changed in the IFR include an introduction of a COVID revenue reduction score and the launch of a direct borrower forgiveness process and portal for loans under $150,000. PPP lenders must opt into the SBA portal in order for their borrowers to utilize it. This will allow borrowers to apply directly to the SBA for PPP loan forgiveness. The new revenue reduction score will satisfy the requirement of a borrower to document a revenue reduction on a second draw PPP loan if they had not done so during the application process. Should the borrower’s score not meet the value required by the SBA, they would go through the traditional method of providing that information with the forgiveness application.
We encourage all borrowers with PPP loans under $150,000 that have not yet applied for forgiveness to reach out to their lender to see if they can take advantage of either the new portal or revenue reduction score. Please contact your trusted advisor at Anderson ZurMuehlen if we can be of any assistance during this process.
Please see the link below for a more in-depth article released yesterday by the AICPA’s Journal of Accountancy.
The Anderson ZurMuehlen Team is available to answer any questions you may have regarding the newest round of PPP guidance. This article was written by Megan Connors, CPA, CFE, and Shareholder in our Great Falls Office.