Last night, April 2, the SBA issued an Interim Final Rule for the Paycheck Protection Program. You can find the Interim Rule here. These rules are not final but do contain multiple changes and interpretations of the Act that will affect the loan amount, potential repayments, among other items. In particular, the SBA is now stating the interest rate on the loans will be 1% (rather than .5%) and the term will be 24 months.
Since there are many items that have changed and other items that remain unclear and subject to interpretation, we recommend that you contact your bank ASAP. Some banks went live with their applications today, and most others are expected to be accepting applications by Monday.
In addition, the current SBA application can be found here.
We will be reviewing the provisions when the Rule goes final and providing additional guidance.
For more information, contact OFP Shareholder Michelle DiCintio at 703-218-2197.
Odin Feldman Pittleman is working diligently to ensure that our attorneys, staff, and clients remain safe and healthy during the COVID-19 pandemic. We have implemented our business continuity plan to ensure our continued operations so that we are available and responsive to clients while adhering to Federal and State guidelines. While most of our attorneys and staff are working from home, our office is open for scheduled appointments in a safe, clean environment, if needed. From our family to yours, be well and stay safe.