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Updated Paycheck Protection Program Information

May 20th, 2020 | Written by

Updated Paycheck Protection Program InformationWhen the Paycheck Protection Program was launched, many business owners felt both relieved and confused. While the opportunity to receive up to $10 million in forgivable loan funds has been a saving grace for many businesses, borrowers were left with many questions on forgiveness and the rules surrounding the use of these funds. The SBA and Treasury has been releasing new information to help business owners navigate the PPP program.

New SBA PPP Forgiveness Application

The SBA has released a loan forgiveness application that borrowers must submit to their lenders when applying for forgiveness. The application provides a forgiveness calculation which is very useful to review when considering how to spend your PPP funds.

You can review the PPP loan forgiveness application here.

Good Faith Certification for PPP Loans

On May 13, 2020, The Treasury Department released an updated PPP FAQ. One of the most notable changes is regarding how the SBA and Department of Treasury will review the applicant’s necessity for the requested loan amount.

When taking out a PPP loan, borrowers must certify in “good faith” that they have an economic need for their loan to keep their business afloat during the COVID-19 market downturn. However, for borrowers with loans under $2 million, the SBA and the Treasury Department will be following a “Safe Harbor” approach. This means that they will assume that the borrower has met the requirements for their loan and will not be checking their claims of necessity.

In the PPP loan forgiveness application discussed above, there is a box where borrowers who receive over $2 million in funds will have to check. Anyone applying for forgiveness with a loan over $2 million will be audited.

For more information, you can read the entire Treasury Department FAQ here. Question 46 specifically discusses the issue of reviewing “good faith” certification.


On May 15th, The House of Representatives also passed the HEROES Act. While this act is still in the legislative process, the $3 trillion bill does look to make some changes to the Paycheck Protection Program. Some of the proposed changes include:

  • Extending the 8-week period to 24 weeks
  • Reducing the 75% payroll requirement
  • Extending PPP through the end of the year
  • Making 501c(6) organizations such as small media companies and chambers of commerce eligible to receive PPP funds

We’re All In

Navigating the COVID-19 landscape can be tricky as a business owner. At Prosperity, we’re all in. We’re here to help you manage your PPP funds, help you with cash flow, and anything else during this unprecedented time. If you need us, you can leave us a note in the box below, email us at [email protected] or call us at (410) 363-7211

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    This information is not intended to be used as the only bases for investment decisions, nor should it be constructed as advice designed to meet your particular needs. You are advised to seek the advice of your financial advisor prior to making any decision based on any specific information contained herein.
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