SBA Releases Promissory Note, New FAQs on PPP Implementation

The Small Business Administration tonight released a long-awaited promissory note form for use with Paycheck Protection Program loans. Bankers, the American Bankers Association and the state bankers association have strongly advocated for SBA to provide a standard note.

Meanwhile, SBA and the Treasury Department overnight updated their frequently asked questions on the PPP to address several questions raised by ABA and member banks. Bankers should bookmark the FAQs, which will be regularly updated as SBA and Treasury address questions.

Among other topics, the newly added answers clarify:

  • That lenders may rely on borrower certifications as to the applicability of affiliation rules.
  • That lenders do not need to re-verify beneficial ownership information for existing customers. (If participating depository institutions have not yet collected beneficial ownership information on existing customers, they are not required to do so for those customers applying for PPP loans.)
  • How payroll is defined under the CARES Act, including the calculation of non-cash benefits and coverage of paid leave.
  • Methods for determining payroll to calculate maximum loan amounts.
  • That lenders who processed applications based on the April 2 interim final rule may rely on the laws, rules and guidance available at the time.

ABA continues to seek guidance from Treasury and SBA, including on the eligibility of bank directors for PPP loans, and will share updates with members as they become available. ABA has set up a dedicated email address, [email protected], for bankers to submit questions they may have about the PPP that are not addressed in the association’s own FAQs, which have been updated to reflect the new answers from SBA and Treasury but not the newly released promissory note. Bankers can also find information and resources about the PPP on ABA’s new dedicated webpage at

View all ABA Banking Journal coverage of the SBA Paycheck Protection Program.

This article has been updated to reflect additional resources being released on April 7, 2020.