The SBA updated its frequently asked questions on the Paycheck Protection Program with guidance on the extended deferral period for borrower payments on PPP loans.
The update says the extension of the deferral period under the PPP Flexibility Act of 2020 automatically applies to all PPP loans. Lenders are required to give immediate effect to the extension and should notify borrowers of the change. Further, SBA said it does not require a formal modification to the promissory note.
The SBA also released its letter to PPP lenders announcing that it has begun remitting PPP loan forgiveness payments.
