New Rules Issued Clarifying PPP Loan Forgiveness, Lender Responsibilities and SBA Review


On May 22, the SBA and Treasury released two additional interim final rules (IFRs) on PPP loan forgiveness, providing specific guidance to borrowers and lenders regarding their responsibilities, as well as information on the SBA’s process for reviewing loans for eligibility, use of proceeds and forgiveness amounts.   Significantly, the guidance clarifies that the lender will be responsible, subject to review by the SBA, for determining whether the borrower is eligible for loan forgiveness and, if so, the loan forgiveness amount.  Although lenders may rely on borrower certifications and documentation, the guidance underscores that lenders still must review and confirm that information in making their determinations. The guidance also makes clear that the SBA may review any PPP loan at any time. 

Both borrowers and lenders should familiarize themselves with this new guidance to avoid complications or delays during the loan forgiveness process or any SBA review of the PPP loan. 

The first IFR concerns loan forgiveness requirements and provides additional guidance on the previously released loan forgiveness application. The second IFR provides guidance on the SBA loan review process and borrower and lender responsibilities. New guidance and points of clarification include:


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National Law Review, Volume X, Number 149