On March 31, 2020, the U.S. Department of the Treasury released updated guidance on the Paycheck Protection Program (PPP) that is underway as part of the CARES Act. While much of this release is consistent with the initial documentation, lenders should review the updated documents to be aware of any changes that have occurred, including:
- A reduction in the interest rate on PPP loans from 4 percent to 0.5 percent
- A change in the required term from ten years to two years
- Changes in the terminology describing how large the loan can be
To access the updated guidance, visit the “Assistance for Small Businesses” section at: www.treasury.gov/CARES.