Late last night, the Treasury Department issued a replacement PPP application form. The changes are minor, but important. The old form is now obsolete. The new application form is attached, and can also be found here: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf. This is causing delays for many PPP lenders.
Most notably, the new application expands the business categories to choose from (i.e. sole proprietor, partnership, LLC, etc.) and changes the loan calculation to include refinancing Economic Injury Disaster Loans (“EIDL”) into PPP loans, for those who have existing EIDL loans. The interest rate on PPP loans also increased from .5% to 1% to encourage more lenders to participate in the program. Finally, it appears they’ve now issued a hard cap that “not more than 25% of the forgiven amount may be for non-payroll costs.”
As more developments come to light, we will provide additional updates. If you have any questions, please don’t hesitate to contact us. We hope that you and your families are staying safe and healthy.
All the best,
John Galarnyk
Andrew Cunniff
John Romanucci