PPP Loan Recipient Resources

(as of August 11, 2020)

PPP Forgiveness Updates


1. The forgiveness provisions of the PPP Loan program are much less strict than when the program began.  You now have 24 weeks to spend the funds, more exceptions on the FTE rules and you only have to spend 60% of the funds on payroll.  On August 4, the SBA issued this FAQ on PPP Loan Forgiveness.  Also see the links to the udpated forgiveness applications below.

2. The SBA has not issued the guidelines to the banks on how to review those applications so most banks are not accepting them yet.

3.  The AICPA is advising that you wait to submit your forgiveness application until there is more clarity on the details.  Read the full article here

4. There is speculation that the SBA will offer blanket forgiveness for all "small loans."  At this point, this is only speculation and not clarity on what the SBA will consider "small."  Clues are the fact that when the SBA issued detailed loan data, they only reported recipients whose loans were over $150,000.  The SBA data says that 86.5% of loans were $150,000 or less and they accounted for 27% of the loan funds.  If they forgave loans of $150,000 or less that would be 4.2 million loans that they would not have to review, compared with 660,000 loans over $150,000. (SBA data: loans through June 30, 2020)

Paycheck Protection Program Flexibility Act 

Here is a link to AFC's most recent webinar with detailed updated information

The key changes are:


1. The covered period can be extended to 24 weeks, providing borrowers with 24 weeks to spend the PPP funds from the time they receive them (increased from 8 weeks)

2. The amount of the funds required to be spent on payroll to be forgiven is reduced to 60% (from 75%)

3. Additional exemptions from the FTE requirement to include employers who do not rehire because they are not able to open due to government restrictions.  The date of the safe harbor to restore the workforce is extended to December 31.

4. The loan term has been extended to 5 years (from 2) for borrowers who have some or all of the loan not forgiven. The interest rate is still 1%.

OMB UPDATES for Federal Grant Recipients

OMB has issued guidance that PPP Loan recipients may not report the use of PPP Loan funds for the same salaries that are reported under a federal grant.  The OMB guidance does encourage federal grant recipients to work to conserve federal grant funds by using the PPP funds and any other cost-saving measures to ensure federally-funded programs can maintain continuity. OMB has also issued guidance that the proceeds of a PPP loan that are forgiven will not be subject to Single Audit requirements.

UPDATES for EIDL Recipients

If you received an Economic Impact Disaster Loan advance from the SBA after receiving your PPP proceeds, your loan forgiveness amount will be reduced by $10,000 and the funds from the EIDG will need to be repaid to your bank.  Proceeds from the EIDL program will be subject to Single Audit requirements under 2CFR200.


SBA Forgiveness application (EZ-version)       SBA EZ form instructions

SBA Forgiveness application (full version)       SBA Full form instructions

AFC Annapolis

1125 West Street, Annapolis, Maryland 21401

202.386.6433   |  info@advisorsforchange.com

AFC Austin

801 Barton Springs Road, Austin, Texas 78704

512.337.6393  |   info@advisorsforchange.com

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