SBA Issues New Interim Final Rule
Saturday, May 9, 2020
By Sue Peirce, CPA | COVID-19 Response Team
SBA newest Interim Final Rule impacts lender deadlines, but also promises further borrower guidance before May 14th.
SBA issued its newest Interim Final Rule (IFR), effective May 8th, addresses the certification safe harbor. This IFR restates the certification of necessity required to be made by the borrower. SBA previously addressed the certification of necessity and safe harbor deadline for returning PPP funds both in the Paycheck Protection Program (PPP) FAQs (question 45) and the Fourth IFR dated April 24, 2020.
This IFR impacts the lenders as it extends their reporting requirement (Form 1502 – information on loan status and lender remittance) until May 22, 2020.
From the borrower’s perspective, the SBA is still promising additional guidance prior to the May 14th safe harbor deadline (originally May 7th) for returning funds when PPP borrowers determine that they may have misapplied or misunderstood the statutory certification standard.
In addition, the DOL made important updates to its FAQs on emergency leave. Our team recommends checking the DOL FAQ website frequently, as they are routinely updated. In particular, question 93 from the DOL states:
93. I took paid sick leave and am now taking expanded family and medical leave to care for my children whose school is closed for a COVID-19 related reason. After completing distance learning, the children’s school closed for summer vacation. May I take paid sick leave or expanded family and medical leave to care for my children because their school is closed for summer vacation?
No. Paid sick leave and emergency family and medical leave are not available for this qualifying reason if the school or childcare provider is closed for summer vacation, or any other reason that is not related to COVID-19. However, the employee may be able to take leave if his or her child’s care provider during the summer—a camp or other programs in which the employee’s child is enrolled—is closed or unavailable for a COVID-19 related reason.
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