The Small Business Administration late Friday issued an interim final rule making technical changes related to the safe harbor for firms that have access to other sources of capital to repay Paycheck Protection Program loans. The rule implements an extension announced by SBA earlier this week. Borrowers who applied for PPP loans prior to April 24, 2020, who repay their loan in full by May 14, 2020, will be deemed by SBA to have made the required certification of economic need in good faith.
SBA also extended the deadline for lenders to file the yet-to-be released Form 1502 in order to receive their lender processing fee. As SBA previously announced, lenders must file Form 1502 within 20 calendar days after the PPP loan is approved. For loans approved before Form 1502 is made available, the form must now be filed by May 22.
As of the end of the day Friday, SBA had approved 2.55 million round two PPP loans amounting to $187 billion, up $2 billion from the total approved on Thursday.
Of that total, approximately 1.2 million loans were made by lenders with over $50 billion in assets, 359,000 by lenders with $10-50 billion in assets and 991,000 by lenders with under $10 billion. The average loan size for round two was $73,512.
