SBA: Paycheck Protection Program Loan Funding Still Available for Puerto Rico, USVI
Loan Forgiveness Application Released
SAN JUAN – The U.S. Small Business Administration said Monday that it continues to approve loans for Puerto Rico and U.S. Virgin Islands small businesses during the second round of SBA’s Paycheck Protection Program (PPP), with over $120 billion still available.
The PPP was created by the Coronavirus Aid, Relief and Economic Security (Cares) Act to provide loans to small businesses and keep workers during the COVID-19 pandemic and are forgivable if all employees are kept for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
The SBA released the PPP Loan Forgiveness Application and instructions for the application on Monday as well.
“The documents released will help small businesses seek forgiveness at the conclusion of the eight-week period covered under the law, which begins with the disbursement of their loans,” said SBA Acting District Director María delos Angeles de Jesús.
As of May 8, the SBA had approved 24,700 PPP loans in Puerto Rico and the USVI for “$1.12 billion, a 21 percent and 7.28 percent increase, respectively, over PPP loan approvals in the district during the first five days of the second round,” the agency said,
“We encourage small business owners in Puerto Rico and the U.S. Virgin Islands to take advantage of this opportunity to keep their employees on the payroll by applying for a PPP loan today,” de los Ángeles de Jesús said. “Our local banks and certified credit unions are readily available to continue processing applications and supporting our small businesses, as they strive to maintain the livelihood of their employees.”
The form and instructions include several “measures to reduce compliance burdens and simplify the process for borrowers,” the SBA said:
- Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
- Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan
- Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
- Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
- Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined
The form and instructions inform borrowers how to apply for forgiveness of their PPP loans. The SBA assured it will also issue regulations and guidance shortly “to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities.”
Click here to view the application and instructions.
For more information on SBA programs for small business impacted by Coronavirus, please visit www.sba.gov/coronavirus.