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SBA Releases New Frequently Asked Question (No. 49) - Maturity Dates for PPP Loans

Client Alert
June 29, 2020

On June 25, 2020 the SBA released a new Frequently Asked Question (No. 49) concerning the maturity dates for PPP Loans as modified by the recently passed Paycheck Protection Program Flexibility Act. All PPP Loans received on or after June 5, 2020, will have a five-year maturity. Any PPP Loan received before June 5, 2020, has a two-year maturity, unless the borrower and lender mutually agree to extend the term of the loan to five years. Businesses should address the maturity issue with their SBA lender and discuss any available change to the loan maturity date.

For additional clarity concerning the issue of when PPP Loan proceeds must be used to refinance Economic Injury Disaster Loans (EIDL), the SBA issued a new Procedural Notice on June 22, 2020. Consistent with the CARES Act, the Procedural Notice provides:

  • A Business that received an EIDL Loan from January 31, 2020 through April 3, 2020 and used the EIDL Loan funds to pay “payroll costs” must refinance the EIDL Loan with any PPP Loan proceeds received.
  • A Business that received an EIDL Loan from January 31, 2020 through April 3, 2020 but used the EIDL Loan funds to pay expenses other than “payroll costs” is not required to refinance the EIDL Loan with PPP Loan proceeds received.
  • A Business that received an EIDL Loan either before January 31, 2020 or after April 3, 2020 may not use PPP Loan proceeds to refinance the EIDL Loan.
Blake R. GerneySBABMD SBA Loan TeamSBA LoansPPPPPP Loanpaycheck protectionPaycheck Protection Program Flexibility Act of 2020BorrowerslenderloansEIDLEconomic Injury Disaster LoanCARES Actsmart businesspayroll
Client Alert

HHS Revokes Public Comment Requirement on Certain Policy Changes

March 5, 2025The U.S. Department of Health and Human Services (HHS) has revoked the Richardson Waiver, eliminating the requirement for public notice and comment on certain policy changes. This decision allows HHS to implement new policies more quickly, potentially affecting healthcare funding rules like Medicaid work requirements. While it speeds up policymaking, it also reduces opportunities for stakeholder input, raising concerns over transparency and unintended consequences for healthcare providers, states, and patients.Client Alert

Don't Get Caught Dazed and Confused: Another Florida Court Weighs in on Employer Obligations to Accommodate Medical Marijuana Use

March 3, 2025A Florida trial court ruled in Giambrone v. Hillsborough County that employers may need to accommodate off-duty medical marijuana use under the Florida Civil Rights Act (FCRA). This contrasts with prior rulings and raises new compliance challenges for employers. With the case on appeal, now is the time to review workplace drug policies.Client Alert

Corporate Transparency Act to be Re-evaluated

February 28, 2025Recent federal rulings have impacted the enforceability of the Corporate Transparency Act (CTA), which took effect on January 1, 2024. While reporting requirements were briefly reinstated, FinCEN has now paused enforcement and is reevaluating the CTA. Businesses are no longer required to submit reports until further guidance is issued. For updates and legal counsel, contact BMD Member Blake Gerney.Client Alert

Ohio Recovery Housing Operators Beware: House Bill 58 Seeks to Make Major Changes

February 26, 2025Ohio House Bill 58 proposes significant changes to recovery housing oversight, granting ADAMH Boards authority to inspect and investigate recovery residences. The bill also introduces a Certificate of Need (CON) program, requiring state approval for major facility changes. OMHAS will assess applications based on cost, quality, accessibility, and financial feasibility. The bill also establishes a recovery housing residence fund to support inspections. For more information, contact BMD attorneys Daphne Kackloudis or Jordan Burdick.Client Alert

January 2025 Notice of Proposed Rulemaking Brings Notable Changes to HIPAA Security Rule

February 25, 2025In January 2025, the U.S. Department of Health and Human Services proposed amendments to the HIPAA Security Rule, aiming to enhance cybersecurity for covered entities (CEs) and business associates (BAs). Key changes include mandatory compliance audits, workforce training, vulnerability scans, and risk assessments. Comments on the proposed rule are due by March 7, 2025.
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