Update – Small Business Administration Expands Its FAQs on Paycheck Protection Program – Duane Morris
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Note: This is an update to our previous Alert on this subject.
The SBA continues to clarify aspects of the Paycheck Protection Program. Effective on April 13, the SBA updated the original FAQs from April 3 to add question numbers 19 to 25. The new FAQs and answers cover the following principal areas:
Loan Documents
The SBA provided a promissory note template. However, lenders may use their own form note, and may include any terms not inconsistent with the CARES Act and related SBA guidance.
Timing for Disbursements
Funds must be disbursed within 10 days after approval.
Measurement of Forgiveness Period
The forgiveness period lasts eight weeks and starts on the origination date of the loan.
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