The Small Business Administration tonight released new borrower and lender guaranty application forms for the Paycheck Protection Program to reflect expanded eligibility for applicants with prior felony convictions.
Previously, businesses were ineligible for PPP loans if at least 20% of their equity was owned by someone who had been convicted of a felony in the past five years. Under an interim final rule issued today, this prohibition window is reduced to one year for businesses whose owners have been convicted of non-financial felonies. The five-year period remains in place for felonies involving fraud, bribery, embezzlement or false statements on applications for loans or federal assistance.
SBA’s revised lender guaranty and borrower application forms reflect the changes in the interim final rule and should be used for new loan applications going forward.