On August 11, 2020, the SBA released additional FAQs for both the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) program. Both updates may be found at the following links:
FAQs for Lenders and Borrowers (Questions 50 & 51) – https://www.sba.gov/sites/default/files/2020-08/Final%20PPP%20FAQs%20%28August%2011%2C%202020%29-508.pdf
FAQs about PPP Loan Forgiveness – https://www.sba.gov/sites/default/files/2020-08/PPP%20–%20Loan%20Forgiveness%20FAQs%20%28August%2011%2C%202020%29-508.pdf
Below is a summary of updates from both documents:
The term “group health care benefits” has been expanded to encompass health insurance premiums, vision, and dental benefits.
Lenders (e.g. banks) will be able to confirm the amount of EIDL advances to deduct from the overall PPP forgiveness amount.
If a borrower received an EIDL advance in excess of their PPP loan, the borrower will not receive any forgiveness on their PPP loan.
Lenders (e.g. banks) will notify borrowers of the loan forgiveness amount remitted by the SBA and the date on which the borrower’s first loan payment is due, if applicable.
Lenders (e.g. banks) will continue to service the loan/receive loan payment after forgiveness is determined, which the lender will remit to the SBA.