SBA Issues More New Guidance on PPP Loan Forgiveness

In a new FAQ published on August 4, 2020, SBA clarified some additional points from the use of scanned documents to support the application to the forgiveness eligibility of costs incurred or paid during the chosen covered period. As always, PilieroMazza wants to bring this to the attention of all of our clients as we know many firms are currently preparing their forgiveness applications and these may be critical updates. General Loan Forgiveness If you are a sole proprietor/1099 or . . . Read More

GSA and SBA Issue Additional Guidance on Bidding Through Joint Ventures for STARS III

As we  wrote  on July 16th, SBA was interpreting 13 CFR 124.513(a)(2) as prohibiting awards of STARS III to both an 8(a) firm, individually, and a joint venture where that same 8(a) firm was the entity upon whom eligibility for the JV was based. Below we address additional guidance as to SBA’s interpretation of the prohibitions for 8(a) firms seeking to bid on STARS III—as well as compliance requirements—which are important to note as firms prepare their bidding strategies. As of Friday evening, SBA . . . Read More

SBA and Treasury Release New PPP Application Forms

As we reported in our previous alert , President Trump signed the Paycheck Protection Program Flexibility Act (“Flexibility Act”) into law. The bill makes numerous changes to the Paycheck Protection Program (“PPP”) aimed at improving loan forgiveness procedures and loosening restrictions on PPP funds. In accordance with the Flexibility Act, the Small Business Administration (“SBA”) and Department of the Treasury (“Treasury”) released revised application forms for businesses participating in the PPP. The new PPP application forms differ substantially from their previous . . . Read More

SBA’s New WOSB / EDWOSB Certification Requirement and 8(a) Economic Disadvantage Criteria Revisions: What You Need to Know

Presented by  Meghan Leemon and Jonathan Pomerance.   Click here to view the recorded session.   The Small Business Administration recently published a final rule that will impact businesses competing for contracts under the Women-Owned Small Business (WOSB) Program and those companies seeking admission to the 8(a) Business Development Program. The rule implements a certification requirement for WOSBs and Economically Disadvantaged Women-Owned Small Businesses (EDWOSBs) and also revises 8(a) economic disadvantage eligibility criteria.   This webinar covers ways to keep your business competitive and compliant, . . . Read More

Treasury and SBA to Make Changes Regarding Enactment of PPP Flexibility Act

On May 28, 2020, we wrote about the Paycheck Protection Program Flexibility Act (the Act), a new piece of legislation introduced in the House of Representatives. The Act’s intended purpose was to give employers more latitude regarding the use of their Paycheck Protection Program (PPP) loans while also increasing loan forgiveness in order to stimulate the economy. Since then, the Senate has passed the Act and President Trump signed it into law . On June 8, 2020, U.S. Department of the Treasury . . . Read More

Congress Approves Significant Changes to SBA’s Paycheck Protection Program

As we reported in our previous alert , the bipartisan bill the Paycheck Protection Program Flexibility Act of 2020 , was passed on May 28, 2020 by the House of Representatives. Last night, the Senate passed the bill, which now heads to President Trump for his signature.  If signed into law by the President, the bill will make significant changes to SBA’s Paycheck Protection Program, including: Extend the “covered period” under which small businesses can spend the loan proceeds from eight weeks to 24 weeks or until December . . . Read More

SBA Issues Long-Awaited PPP Loan Forgiveness Application

SBA recently issued its 11-page Paycheck Protection Program Loan Forgiveness Application, linked here . The application walks borrowers through a step-by-step process to determine loan forgiveness amounts based upon the information the borrower enters. It is of note that the application does require borrowers to provide documentation to support the payroll and non-payroll costs paid using PPP Loan funds. This includes the following information to prove the funds were properly spent on covered liabilities incurred, or which became due, during the 8-week period following . . . Read More

SBA, Treasury Issue New Guidance Concerning Good-Faith Certification on the Necessity of Their Loan Request

On May 13, 2020, the Small Business Administration (“SBA”) and Treasury Department (“Treasury”) released new guidance  concerning good-faith certification for Paycheck Protection Program (“PPP”) loan requests. This new guidance clarifies that businesses seeking a PPP loan of less than $2 million will have made their request in good faith unless proven otherwise. SBA and Treasury released this guidance because they believe that borrowers within this safe harbor threshold do not have as much access to other sources of funds that larger loan . . . Read More