What is the Express Bridge Loan Program? The Express Bridge Loan Program was formed in 2017 to provide financial assistance to presidentially declared disaster areas. On March 25, 2020, the SBA expanded the Express Bridge Loan (EBL) program to small businesses nationwide impacted by COVID-19. Through the EBL program, small businesses can borrow up to…
On June 5, 2020, the President signed into law the Paycheck Protection Program Flexibility Act. This legislation modifies the U.S. Small Business Administration (SBA) Paycheck Protection Program (PPP). The Flexibility Act includes the following modifications: 1. Extends Forgiveness Period This Flexibility Act extends to the cover-period from 8 weeks to 24 weeks. 8-week cover period. The 24-weeks…
On May 15, 2020, the Treasury Department and Small Business Administration(SBA) released the PPP Forgiveness Application providing additional guidance and insight on the loan application process to borrowers. Additionally, the SBA released an Interim Final Rule (IFR) related to loan forgiveness on May 22, 2020, which was consistent with the application and added clarifications. Keep in…
Four Events can trigger a reduction in loan forgiveness: Reduction Based on Use of Funds Reduction Based on Employee Headcount Reduction Based on Employee Payroll Reduction Based on Advance Payment #1 Reduction Based on Use of Funds At least 75% of the loan proceeds must be used on payroll costs. Borrowers may only spend only…