SBA and FinCEN Issue PPP FAQs


The Small Business Administration (SBA) and the Financial Crimes Enforcement Network (FinCEN) have issued separate Paycheck Protection Program (PPP) FAQs.

The SBA has added FAQs 54–56 to its PPP FAQs to clarify that the FinCEN’s April 2020 PPP FAQs still apply to second-draw PPP loans. They also clarify that lenders may rely on information obtained from a borrower during a first-draw loan application for a second-draw application, provided the borrower is an existing customer. Question 56 is specific to employee limits for loans to a public broadcasting station if a college or university operates or holds the license for the station and the station is not a separate legal entity.

The updated FAQs include a statement that questions 1–53 are in the process of being revised and do not yet reflect changes made by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act enacted December 27, 2020.

The SBA also issued a new FAQ on the Shuttered Venue Operators Grant (SVOG) program under section 324 of the Act.

FinCEN Affirms PPP FAQs
FinCEN has again issued FAQs confirming identical FAQs issued by SBA in connection with the Paycheck Protection Program (PPP). The SBA recently re-issued its PPP FAQs, adding two interpreting application of FinCEN regulations to Second Round PPP loans. As administrator of the Bank Secrecy Act (BSA), FinCEN has issued its own document with the applicable FAQs, indicating that borrowers and lenders may rely on the guidance in the FinCEN document as SBA's interpretation of the CARES Act and of the PPP Interim Final Rule. FinCEN also stated it will not challenge lender PPP actions that conform to that guidance, and to the PPP interim final rule and any subsequent rulemaking in affect at the time.

FAQs 1 and 2 in the FinCEN document are repeats of FAQs issued in April 2020. Questions 3 and 4 are the same as questions 54 and 55 of the updated SBA FAQs.

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