Paycheck Protection Program: Timeline of Important Regulatory Announcements

The Coronavirus Aid, Relief and Economic Security (the CARES) Act created the Paycheck Protection Program (Triple P or PPP) and entrusted it to the Small Business Administration (SBA). Since then, the US Treasury and the SBA have been relatively consistent in noting that the actions of lenders and borrowers will be weighed against the rules then in effect. The SBA and the Treasury have shown no hesitation in changing the rules well after substantial economic conduct has occurred. In light of the ever evolving Triple P, we have developed a timeline that captures every update specifically related to the Triple P since the passage of the CARES Act, including interim final rules, new FAQs, interagency guidance, and any other regulatory or agency action that impacts the Triple P. The timeline below is an abbreviated version of our comprehensive annotated timeline – please contact us for additional information.

SBA issued a new Procedural Notice 5000-809631 on First Draw PPP loan increases after enactment of the Economic Aid Act, April 19, 2021
SBA released new FAQs addressing eligibility of PPP applicants and owners of PPP applicants that have applied for bankruptcy protection in the past, April 6, 2021
SBA released new FAQs explaining the options that Schedule C filers have if they already submitted a PPP loan application that did not use the newly permissible gross income calculation,April 6, 2021
SBA released a new Procedural Notice 5000-808216 on revised procedures for addressing hold codes and compliance error messages on PPP loans, March 29, 2021
SBA released new interim final rule implementing changes to the PPP in accordance with the American Rescue Plan Act, March 18, 2021
SBA issued a new interim final rule on loan amount calculation and eligibility, March 3, 2021
SBA issued new FAQs outlining various eligibility considerations for first and second time PPP borrowers, March 3, 2021
SBA issued new borrower application form for Schedule C filers using gross income, March 3, 2021
SBA issued new second draw borrower application form for Schedule C filers using gross income, March 3, 2021
SBA issued revised first time borrower application form, March 3, 2021
SBA issued revised second draw borrower application form, March 3, 2021
SBA released Procedural Notice 5000-20092 that revises Procedural Notice 5000-20083 and outlines new procedures for addressing hold codes on first draw PPP loans and compliance check error messages on first and second draw PPP loans, February 10, 2021
SBA released Procedural Notice 5000-20091 that provides information on PPP lender processing fee payment and 1502 reporting process, February 8, 2021
SBA released Procedural Notice 5000-20083 that provides guidance on procedures for addressing unresolved issues on first draw PPP loans, January 26, 2021
SBA issued new Interim Final Rule on Loan Forgiveness Requirements and Loan Review Procedures as Amended by Economic Aid Act, January 19, 2021
SBA issued new Form 3508D for Borrower’s Disclosures of Certain Controlling Interests, January 19, 2021
SBA issued Procedural Notice 5000-20078 on PPP excess loan amount errors, January 15, 2021
SBA issued Procedural Notice 5000-20077 on resubmission of loan forgiveness applications using updated Form 3508S and lender notice responsibilities as well as offset remittances to lenders for lender debts, January 15, 2021
SBA issued Procedural Notice 5000-20076 on PPP loan increases after the enactment of the Economic Aid Act, January 13, 2021
SBA issued Procedural Notice 5000-20075 on the repeal of EIDL Advance deduction from forgiveness amounts, January 8, 2021
SBA and Treasury issued interim final rule that consolidates all previous interim final rules and the PPP as amended by the Economic Aid Act, January 6, 2021
SBA and Treasury issued interim final rule on Second Draw PPP Loans, January, 6, 2021
SBA issued guidance on accessing capital for minority, underserved, veteran and women-owned business concerns, January 6, 2021
Consolidated Appropriations Act, 2021 was signed into law and includes $284.5 billion in funding for a new round of the PPP. The Act requires the SBA to issue regulations for the new round of the PPP as well as to address other changes to the PPP within 10 days of enactment, December 27, 2020
Federal Reserve released updated FAQs for the Paycheck Protection Program Liquidity Facility with respect to PPP loans that do not comply with the SBA rules, December 9, 2020
SBA released a new FAQ regarding the revised Loan Necessity Questionnaires, December 9, 2020
SBA released revised Loan Necessity Questionnaires for non-profit and for-profit borrowers, December 9, 2020
Treasury and IRS released guidance regarding PPP loans and deductibility of expenses, November 18, 2020
SBA released PPP Loan Necessity Questionnaires (Forms 3509 and 3510) for borrowers that received PPP loans of $2 million or more (the forms are not yet posted online, please contact us for a copy), October 30, 2020
FDIC issued proposed Interim Final Rule to provide temporary relief from Part 363 audit and reporting requirements as a result of IDIs experiencing large cash inflows resulting from participation in the PPP and PPPLF, October 20, 2020
SBA issues new streamlined PPP forgiveness application (Form 3508S) for loans of $50,000 or less, October 8, 2020
SBA released new FAQ on the extension of the deferral period under the PPP Flexibility Act and corresponding lender obligations, October 7, 2020
SBA releases guidance on changes of ownership for borrowers with outstanding PPP loans, October 2, 2020
Federal Reserve released new guide for pledging PPP loans with modified maturities, September 25, 2020
IRS issued guidance directing lenders not to file information returns or furnish statements to borrowers to report the amount of qualifying loan forgiveness for covered loans made under the PPP, September 21, 2020

Federal Reserve released an updated PPPLF individual loan reduction report form. Effective September 18, 2020, the single reduction report form replaces the two forms (Transmittal Form for Reporting Reductions of Outstanding Principal Balance of Small Business Administration Paycheck Protection Program Loans Pledged to Secure Paycheck Protection Program Liquidity Facility Advances and the Paycheck Protection Program Individual Loan Listing Table), September 17, 2020.
SBA released IFR on the treatment of owner-employees and forgiveness of certain nonpayroll expenses, August 24, 2020
SBA and Treasury released new Frequently Asked Questions on Loan Forgiveness, August 11, 2020
SBA issues interim final rule on the process for borrowers to appeal adverse SBA decisions regarding borrower eligibility, the loan amount received, improper use of the PPP loan proceeds, and/or the PPP loan forgiveness amount claimed by the borrower, August 11, 2020
SBA released new Frequently Asked Questions on Economic Injury Disaster Loans, August 11, 2020
SBA and Treasury released new Frequently Asked Questions on Loan Forgiveness, August 4, 2020
SBA released new Lender Application Form for Federally Insured Depository Institutions, Credit Unions, and Farm Credit System Institutions, July 20, 2020
SBA released new Lender Application Form for Non-Bank and Non-Insured Depository Institution Lenders, July 20, 2020
SBA issued procedural notice with guidance on the monthly Form 1502 reports, July 14, 2020
The Paycheck Protection Program Extension is signed into law, July 4, 2020
The SBA updated its document on calculating maximum Paycheck Protection Program loan amounts by business type with information on self-employed borrowers. June 26, 2020
SBA released IFR on additional eligibility revisions to the first IFR with respect to felony convictions, June 25, 2020
SBA released a new FAQ clarifying that the maturity date of a loan receiving an SBA loan number on or after June 5, 2020 is 5 years, June 25, 2020
SBA released IFR on certain eligible payroll costs for fishing boat owners, June 25, 2020
SBA released IFR on revisions to the loan forgiveness rules, June 22, 2020
FDIC issued final rule mitigating the effect of participation in the PPP and PPPLF on an insured depository institution’s assessment rate, June 22, 2020.
SBA released guidance on refinance of EIDL loans with PPP loan proceeds and lender remittance of EIDL refinance proceeds to SBA, June 22, 2020
SBA Released IFR on Revisions to the Third and Sixth Interim Final Rules, June 17, 2020

SBA Released Loan Forgiveness Application Form EZ Instructions, June 17, 2020
SBA Released Loan Forgiveness Application Form EZ, June 17, 2020
SBA released revised standard Loan Forgiveness Application, June 17, 2020

SBA released IFR on additional revisions to the first interim final rule (borrower eligibility), June 12, 2020
SBA released revised Borrower Application Form, June 12, 2020
SBA released revised Lender Application Form, June 12, 2020
SBA released IFR on revisions to the first interim final rule, June 10, 2020
The Federal Reserve updated the FAQs for the PPPLF to address amendments to the PPP enacted by the Paycheck Protection Program Flexibility Act, June 8, 2020
The Paycheck Protection Program Flexibility Act (“PPPFA”) is signed into law, June 5, 2020
SBA released IFR on eligibility of certain telephone cooperatives, June 5, 2020
SBA released IFR on loan forgiveness, May 22, 2020
SBA released IFR on loan review procedures and related borrower and lender responsibilities, May 22, 2020
SBA released Procedural Notice describing the reporting process through which Lenders will report on PPP loans using Form 1502 and collect the processing fee on fully disbursed loans, May 21, 2020
SBA released IFR on second extension of limited safe harbor with respect to certification concerning need for PPP loan and lender reporting, May 20, 2020
Federal Reserve released new forms for the PPPLF and issued various new and revised PPPLF FAQs, May 19, 2020
SBA and Treasury released a new PPP FAQ (Question 48) extending the deadline for lenders to submit the initial SBA Form 1502 to the later of May 29, 2020, or ten calendar days after disbursement or cancellation of the PPP loan, May 19, 2020
SBA releases IFR on treatment of entities with foreign affiliates, May 18, 2020
SBA and Treasury release PPP Loan Forgiveness Application, May 15, 2020
SBA releases IFR expanding eligibility for the PPP to electric cooperatives that are 501(c)(12)s, May 14, 2020
SBA releases IFR authorizing lenders to increase existing PPP loans to partnerships or seasonal employers to include appropriate amounts based on new rules and guidance, May 13, 2020
SBA and Treasury released another set of PPP FAQs (Question 46) regarding the economic uncertainty safe harbor and agency enforcement for inadequate basis for economic uncertainty certifications, May 13, 2020
FDIC published notice of proposed rulemaking that would mitigate the deposit insurance assessment effects of participating in the PPP and PPPLF, May 12, 2020
SBA Inspector General Issues PPP Flash Report, May 8, 2020
Interim Final Rule on Extension of Limited Safe Harbor with Respect to Certification Concerning Need for PPP Loan Request, May 8, 2020
CFPB issued clarifying FAQs on lender requirements under the Equal Credit Opportunity Act and Regulation B for PPP loans, May 6, 2020
SBA and Treasury release another set of PPP FAQs (Question 45), May 6, 2020
Interagency IFR released modifying the Liquidity Coverage Ratio (“LCR”) rule to support financial institutions participating in the PPPLF, May 5, 2020
SBA releases IFR on nondiscrimination, religious exemptions and additional eligibility criteria, May 5, 2020
SBA and Treasury release another set of PPP FAQs (Question 43), May 5, 2020
SBA and Treasury release another set of PPP FAQs (Questions 40-42), May 3, 2020
IRS issues guidance that forgiven portion of PPP loans is not included in borrowers’ gross income and that otherwise deductible expenses paid with a forgiven loan may not be deducted, May 1, 2020
SBA releases IFR on maximum PPP loans for corporate groups, as well as eligibility requirements for non-bank and non-insured depository lenders, April 30, 2020

SBA and Treasury release another set of PPP FAQs (Questions 38-39), April 29, 2020
SBA and Treasury issue joint statement announcing audits of all PPP loans exceeding $2 million, as well as random audits of loans under $2 million, April 28, 2020
SBA releases IFR on disbursements requirements, April 28, 2020

SBA and Treasury release another set of PPP FAQs (Question 36), April 26, 2020

U.S. Department of Agriculture (“USDA”) releases FAQs for agricultural producers, farmers, and ranchers, April 25, 2020
SBA and Treasury release guidance on how to calculate maximum loan amounts by business type, April 24, 2020
SBA releases IFR on calculating loan amounts for seasonal businesses. Please see our Client Alert for a summary of the two IFRs and FAQs released on April 24, 2020
SBA releases IFR on requirements for promissory notes, authorizations, affiliation, and borrower eligibility, April 24, 2020
SBA and Treasury release another set of PPP FAQs (Questions 32-35), April 24, 2020
Paycheck Protection Program and Health Care Enhancement Act signed into law, April 24, 2020
SBA and Treasury release another set of PPP FAQs (Question 31), April 23, 2020
SBA and Treasury release another set of PPP FAQs (Question 30), April 17, 2020
Federal Reserve announces the PPPLF is fully operational, April 16, 2020
PPP runs out of funding, SBA closes E-Tran system, April 16, 2020
SBA and Treasury release another set of PPP FAQs addressing faith-based organizations, April 15, 2020
Federal Reserve Board announces rule change to bolster effectiveness of SBA’s PPP, April 15, 2020
SBA and Treasury release another set of PPP FAQs (Question 29), April 15, 2020
SBA releases IFR. Please see our Client Alert for a summary of the terms of the IFR, April 14, 2020
SBA and Treasury release another set of PPP FAQs (Questions 26-28), April 14, 2020
SBA and Treasury release another set of PPP FAQs (Questions 22-25), April 13, 2020
SBA and Treasury release another set of PPP FAQs (Question 21), April 10, 2020
Interagency interim final rule released to neutralize capital effects for participating in PPPLF, April 9, 2020
Federal Reserve announces PPP Liquidity Facility (“PPPLF”) to bolster the effectiveness of the PPP and releases the PPPLF Term Sheet, April 9, 2020; PPPLF FAQ
SBA and Treasury release third PPP FAQs (Questions 19-20), April 8, 2020
SBA releases new lender application form for non-bank and non-insured depository institution lenders, April 8, 2020
SBA and Treasury release second PPP FAQs (Questions 2-18), April 6, 2020
SBA releases second IFR supplementing initial IFR with additional guidance. Please see our Client Alert for a summary of the terms of the IFR, April 3, 2020
FinCEN issues guidance on BSA obligations during COVID-19 (references PPP), April 3, 2020
SBA releases Affiliation rules for the Paycheck Protection Program, April 3, 2020
SBA and Treasury release first PPP FAQs (Question 1), April 3, 2020
SBA releases updated borrower loan application form, April 3, 2020
SBA releases updated borrower loan application form, April 2, 2020
SBA releases Lender Application Form – Paycheck Protection Program Loan Guaranty, April 2, 2020
SBA releases Interim Final Rule (“IFR”) on PPP key provisions (published in the Federal Register on April 15, 2020). Please see our Client Alert for a summary of the terms of the IFR, April 2, 2020
U.S. Treasury (“Treasury”) releases one-page overview of the PPP, March 31, 2020
SBA releases Paycheck Protection Program (“PPP”) general guidance for lenders and borrowers on the agency’s website, March 31, 2020
The Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) is signed into law by President Trump. Includes statutory language for the Paycheck Protection Program. U.S. Small Business Administration (“SBA”) is tasked to provide guidance within 30 days, March 27, 2020