By Nick Goldstein, vice president of regulatory and legal issues, ARTBA

The Small Business Administration (SBA) May 13 issued new guidance for the Paycheck Protection Program, which provides loans to small businesses to help keep employees on the payroll. Loan recipients who retain workers for the duration of the loans may have a portion or all of the loan converted into a grant.

First, the agency said it will not audit loan recipients who received less than $2 million from the program. Businesses that receive more than $2 million will be audited. However, SBA has now clarified that if a loan recipient does not satisfy the requirements of the program, the funds can be repaid without further enforcement actions.

Additionally, the SBA extended until May 18 the deadline for all loan recipients to repay their loans with a presumption of good faith.

See the agency’s latest guidance.