The Small Business Administration will review all requests for forgiveness of Paycheck Protection Program loans in excess of $2 million to “further ensure PPP loans are limited to eligible borrowers in need,” the Treasury Department said yesterday in an updated FAQ on the program.
Treasury added that the outcome of SBA’s loan review, which will also include other loans “where appropriate,” will not affect the loan guarantee, assuming lenders performed a good faith review of the borrower’s calculation of loan size in a reasonable time, as explained in the interim final rule issued April 2 and in the FAQ’s first question. Further guidance outlining this process will be forthcoming.
An additional question in Treasury’s guidance affirms that eligible businesses that were in operation on Feb. 15, 2020, but have since changed ownership, remain eligible for a PPP loan.