Skip to Content

PPP Loan Deadline Extended and SBA Releases Recipient Information

on Friday, 10 July 2020 in Covid-19 Information Hub

Over the last two weeks, there have been several developments regarding the Paycheck Protection Program (“PPP”). The deadline to apply for loans was extended by five weeks, the Small Business Administration (“SBA”) publicly released borrower information, and the SBA updated its FAQs. 

On July 4th, the President signed a bill extending the deadline for small businesses to apply for PPP loans from June 30th to August 8th. Thus far, the SBA has approved almost 5 million loans totaling more than $530 billion, with approximately $130 billion in funding still available.

PPP loan applications inform borrowers that their names and loan values are subject to release under the Freedom of Information Act. On July 6th, the SBA and U.S. Treasury Department made this data public, amid political pressure to increase the program’s transparency. A searchable database discloses business names and loan amount ranges of recipients who have received more than $150,000 through the program.

The SBA also released FAQ #49, clarifying the maturity date of PPP loans. The loan has a two-year maturity if it received an SBA loan number before June 5, 2020, unless the borrower and lender mutually agree to extend the loan’s term to five years. The loan has a five-year maturity if it received an SBA loan number on or after June 5, 2020. The maturity date will be stated on the loan’s promissory note.

When analyzing eligibility, compliance, or other issues related to the PPP loans, both lenders and borrowers should ensure they have consulted the proper sources. If you have any questions regarding the SBA PPP loans, or other aspects of the CARES Act, please contact a Baird Holm LLP attorney.

Hannah Fischer Frey

Tristin Taylor, Summer Associate

1700 Farnam Street | Suite 1500 | Omaha, NE 68102 | 402.344.0500

Law Firm Website Design