The SBA and U.S. Treasury on Friday issued new guidance regarding changes to the Paycheck Protection Program signed into law on June 5, which expands eligibility for business owners with past felony convictions.
Specifically, the new rule updates provisions relating to loan maturity, deferral of loan payments and forgiveness provisions. According to a June 12 press release, the look-back period has been reduced from five years to one year to determine eligibility for applicants, or owners of applicants, who, for non-financial felonies, have:
- been convicted;
- pleaded guilty;
- pleaded nolo contendere; or
- been placed on any form of parole or probation (including probation before judgment).
The period remains five years for felonies involving fraud, bribery, embezzlement, or a false statement in a loan application or an application for federal financial assistance, and the application also eliminates pretrial diversion status as a criterion affecting eligibility, according to the press release.
The full press release can be accessed on the SBA website.