The Kentucky “Healthy At Work” Phased Reopening

Update: May 29, 2020

by Kathie McDonald-McClure, Partner

As we previously reported, on May 11, 2020, Governor Andy Beshear began reopening sectors of Kentucky’s economy, in addition to the healthcare sector, that were closed due to the novel coronavirus 2019 (COVID-19) public health emergency (PHE). The reopening, called Healthy at Work, is a phased approach that is intended to guide businesses and healthcare providers through a “smart, safe and gradual” reopening during the continuing COVID-19 PHE. It is based on criteria set by public health experts and advice from industry experts. Each phase of Healthy at Work will be rolled out in steps to ensure the Commonwealth’s citizens can safely return to work while still protecting the most vulnerable Kentuckians.

Prior to the phased reopening of the non-healthcare sector, the Commonwealth began with “Healthy at Work for Healthcare Facilities,” a four-phase, gradual reopening of healthcare services that began on April 27, 2020. Phases I, II and III are now underway, with the latest phase beginning on May 13, 2020 with non-urgent/non-emergent inpatient procedures at 50% of pre-shutdown volume and inpatient visits limited to one visitor (except in nursing homes where visitors are still prohibited). For additional information, see the webpage for Healthy at Work for Healthcare Facilities.

Minimum Requirements Applicable to All Reopenings. Healthy at Work continues with a phased reopening of specific business and organizational sectors. However, pursuant to the Governor’s Executive Order of May 11, 2020, all entities in the Commonwealth shall comply with certain “Minimum Requirements” attached to that Executive Order, in addition to business or activity-specific requirements. While all entities and activity organizations should carefully review the Minimum Requirements (EnglishEspañola) , the Healthy at Work webpage highlights the following requirements:

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As emphasized by the Governor, compliance with the above Minimum Requirements is essential to protect employees in all businesses, organizations and activities – both healthcare and non-healthcare – as well as to protect the individuals with whom employees may come into contact both inside and outside of their work and other activities. The Minimum Requirements are applicable to all businesses, both those that have reopened and those that had continued to operate throughout the COVID-19 PHE.

As set forth in the Minimum Requirements, if any entity fails to comply with the Minimum Requirements, they can be reported to KYSAFER at 833-KYSAFER or kysafer.ky.gov.

Industry Specific Guidance and Timeline for Reopening. Industry specific guidance will be in place for each business sector under Healthy at Work. The Governor has stated in his daily updates that the business community submitted over 1,000 industry specific proposals on best practices to safely operate within each industry’s capabilities, while keeping employees and customers safe. The timeline for reopening each business sector and the industry-specific requirements for each sector that will apply to all businesses even if they never ceased operations during the state of emergency is as follows:

May 9, 2020:
Places of WorshipSpecific requirements

May 11, 2020:
ConstructionSpecific requirements
Horse racing (no fans)(only authorized employees, Kentucky Horse Racing Commission license holders who have a horse stabled at a racetrack, and those providing support for a horse stabled at a racetrack at the racetrack, e.g., racetrack employees, trainers, assistant trainers, exercise riders, grooms, hot walkers, jockeys, veterinarians, farriers, and feed vendors) – Specific requirements
Manufacturing, distribution and supply chain businessesSpecific requirements
Office-based businesses (at 50% capacity)(includes finance and accounting, legal, insurance, engineering, architecture, real estate, scientific/technical, property management, non-profit organizations performing administrative services, and other corporate offices and private office-based firms) – Specific requirements
Pet care, grooming and boardingSpecific requirements
Photography (limited to family units and groups no larger than 10 provided that individuals who are not living in the same household pose at least 6 feet apart) – Specific requirements
Vehicle or vessel dealershipsSpecific requirements

May 18, 2020:
• Government Offices / AgenciesSpecific Requirements

May 20, 2020:
Funeral and Memorial ServicesSpecific Requirements
Retail – Specific Requirements

May 22, 2020:
Restaurants, with limited 33% capacity plus outdoor seating – Specific Requirements
• Group of 10 people or fewerSpecific Requirements
Travel Ban LiftedOrder.

May 25, 2020:
Barbershops/Cosmetology/Hair SalonsSpecific Requirements
• Massage TherapySpecific Requirements
• Nail SalonsSpecific Requirements
• Tanning SalonsSpecific Requirements
• Tattoo ParlorsSpecific Requirements

June 1, 2020
• Auctions – New! Specific Requirements
Auto/Dirt Track Racing – New! Specific Requirements
Aquatic CentersSpecific Requirements
Bowling AlleysSpecific Requirements
Fishing Tournaments – New! Specific Requirements
• Fitness Centers – New! Specific Requirements
Kentucky State Park Lodges
• Movie Theaters – New! Specific Requirements
Salato Wildlife Education Center

June 8, 2020

  • Educational and Cultural Activities
    o Aquariums
    o Distilleries
    o Libraries
    o Limited Outdoor Attractions
    o Museums
  • Horse Shows
  • Some Childcare (in-home programs) – Specific Requirements

June 11, 2020
Kentucky Horse Park
• Kentucky State Park Campgrounds
• Otter Creek

June 15, 2020
• Some Child-Care (center-based programs, day camps) – Specific Requirements
• Youth Sports (low touch and outdoors) – New! Specific Requirements

New! June 29, 2020
• Bars
• Groups of 50 people or fewer
New! Youth Sports (Expanded Activities)Specific Requirements

The Specific Requirements are also available in Spanish on the Healthy at Work webpage.

Information on specific requirements that have not yet been posted will be announced during the Governor’s daily updates as they are approved. Although not required to reopen, the Governor encourages industry groups, trade associations, and individual businesses to submit reopen proposals that discuss strategies and challenges they face in safely reopening. All proposals are to be evaluated according to White House guidelines and other public health criteria to ensure that Kentucky businesses and other activities are able to comply with public health protocols and CDC guidelines.

Healthy at Work Signage & Other Resources. Kentucky’s Healthy at Work webpage contains links to several resources businesses can use to help implement the Minimum Requirements. These include signage for employees and customers in English, Spanish and French, including signs for Healthy at Work compliance, Do Not Enter if Sick signs and Grocery Store Signage. There is a link for businesses who need hand sanitizers and masks as well as a video on how to make a simple mask out of a bandana. The Governor’s Office has developed a Frequently Asked Questions (FAQs) webpage to answer questions on how the Commonwealth is reopening the state’s economy under the Healthy at Work plan.

The Governor frequently reminds the public during his updates that any of the planned reopenings could be paused as needed to protect public health, especially if the Commonwealth’s progress in the fight against COVID-19 is threatened if Kentuckians let their guard down as a result of the reopenings.

What If My Employees Don’t Want To Return To Work?

Michelle D. Wyrick and Joseph Profancik, a 2020 Summer Associate

As the country sets its sights on reopening the economy, many Americans are understandably hesitant to return to work. Although most states claim that COVID-19 has seen its peak, the number of daily infections reminds us that the virus is still looming all across the nation. Nevertheless, states such as Florida and Tennessee, with numerous states following in their footsteps, have significantly loosened their restrictions and allowed businesses to open their doors once again. As businesses reopen, they will likely face some of the following questions from some employees who are hesitant to return to work.

What if My Employees Don’t Want to Return to Work Because They Make More Money on Unemployment?

In response to the bleeding economy, Congress recently prescribed the CARES Act, which, among other things, allocates an additional $600 per week to unemployment recipients. In many cases, Americans are currently bringing in more money while on unemployment than if they were working. As a result, some Americans may be incentivized not to return to work. In fact, the Department of Labor anticipated such a response and reminded states that they have the obligation to detect waste and fraud in the unemployment insurance system. Many states, including Tennessee, have set up websites for employers to report employees who refuse to return to work.

But can an employee actually refuse to return to work despite the reopening? As an initial matter, the Department of Labor has stated that refusing to return to work, solely because a claimant is taking in more money while unemployed, is not a qualifying refusal. In order to receive unemployment benefits, an individual must be willing and able to work, so a refusal such as this could result in the termination of benefits.

What if My Employees Are Afraid to Return to Work?

Nevertheless, if an employee is afraid to return to work because they fear exposure to COVID-19, the employee may still qualify for unemployment benefits, depending on the circumstances. Kentucky, like several other states, has determined that individuals who leave work “due to a reasonable risk of exposure to infection (self-quarantine) or to care for a family member affected by the virus” have good cause for not working. Likewise, the Occupational Safety and Health Act of 1970 (the “OSH Act”) protects an employee from discriminatory action if the employee in good faith refuses to work under conditions that he reasonably fears will subject him to serious injury or death where he has no other recourse. To be clear, the OSH Act does not give an employee an unqualified right to not return to work. It does, however, prohibit an employer from treating the employee less favorably than similarly situated employees. Whether an individual continues to be eligible for unemployment benefits if she claims she can’t return to work because of risk of exposure to the coronavirus likely depends on the measures an employer has taken to make the workplace safe, including complying with OSHA’s Guidance on Preparing Workplaces for COVID-19 and the Centers for Disease Control’s Interim Guidance for Businesses and Employers Responding to Coronavirus Disease 2019, and what accommodations have been offered to the employee to reduce the risk of exposure. Kentucky has indicated that if an employer provides reasonable accommodations for employees at their workplace or offers an option to telecommute, the employee must work if it is offered by the employer.

An employee may not simply choose to continue to collect unemployment benefits once he has been called back to work. However, if an employee expresses fear of returning to work because of potential exposure to COVID-19, it will be important for employers to ensure that they have taken appropriate steps to protect employees’ safety as recommended by current guidance and that they have considered the availability of reasonable accommodations under the circumstances.

CMS Updates Fee-For-Service FAQs on COVID-19

On May 28, 2020, CMS announced that it had updated its answers to its Frequently Asked Questions (FAQs) on Fee-For-Service (FFS) for COVID-19-related waivers for providers, including physicians, hospitals, and rural health clinics. The FFS FAQs were updated on May 27, 2020 in the areas of outpatient therapy, telehealth coding, and Federally Qualified Health Centers (FQHCs).  Each new FAQ is flagged with “New: 5/27/2020.” 

Self-Certification Social Distancing for Parents or Guardians of Children in Child Care Centers

The Kentucky Cabinet for Health and Family Services published a Self-Certification form requiring parents or guardians of children attending child care centers to certify their compliance with certain social distancing and prevention requirements. Child care centers are to retain a copy of the completed self-certification in each child’s record. Other requirements for the phased reopening of childcare programs can be found here.

HHS Announces Extension for Accepting Terms and Conditions for Provider Relief Fund

On May 22, 2020, the U.S. Department of Health and Human Services (HHS) extended the compliance deadline by 45 days for providers who are receiving payments from the Provider Relief Fund to accept the Terms and Conditions for Provider Relief Fund payments. This extension means providers now have 90 days from the date they received a payment to accept HHS Terms and Conditions or return the funds.

HHS Office of Inspector General Is Monitoring Funds Disbursements and Billing and Claims Data

On May 26, 2020, Christi Grimm, the Principal Deputy Inspector General of the HHS Office of Inspector General (OIG) briefed the U.S. House of Representatives Committee on Oversight and Reform on the OIG’s oversight efforts in response to the COVID-19 pandemic. In this briefing she reported that the OIG will audit the disbursement of funds made through the Provider Relief Fund following reports that wealthy hospitals received a disproportionate share of the funds, rather than smaller, poorer hospitals most in need. She also reported that the OIG is monitoring billing and claims data to ensure that hospitals are not upcoding to take advantage of higher COVID-19 reimbursement rates.

“Back on Track” – A Roadmap to Safely Reopen Indiana

Updated May 28, 2020

by Kathie McDonald McClure, Partner, and Joseph Profancik, Summer Associate

On May 1, 2020, Governor Eric Holcomb announced his plan to get Indiana Back on Track. After nearly eight weeks of shutdowns and isolation, Indiana has decided to move forward with a measured and data driven approach to reopen the economy. This approach involves the application of four guiding principles that Governor Holcomb says will assist a safe sector-by-sector reset of the state’s economy.

First, the number of hospitalized COVID-19 patients state-wide must decrease for 14 days. Indiana achieved this milestone prior to the Governor’s speech on May 1st. Second, the state must retain its surge capacity for critical care beds and ventilators. Currently, state-wide ICU bed and vent availability has remained above 40% and 70% respectively for the last 2 weeks. Third, the ability to test anyone who is COVID-19 symptomatic. To help in the early detection of new cases, the state partnered with OptumServe to add testing locations in strategically located parts of the state and, as of May 28, 2020, the Indiana COVID-19 website reflects 213 testing locations across the state. Finally, the fourth guiding principle is the ability to contact all individuals who have tested positive for COVID-19 and expand contact tracing. In Indiana Contact tracing began on May 11th, and over 500 tracers have been onboarded.

With these guiding principles in mind, Governor Holcomb laid out a 5-stage roadmap for reopening Indiana with the goal of having the state back on track by July 4th – Independence Day. As of May 28th, 2020, per Governor. Holcomb’s Executive Order 20-28, Indiana is in stage three of the roadmap. This Executive Order sets forth the best practices that Hoosier residents, businesses, organizations and others are to follow in stage three in addition to industry specific guidelines. Continuation into the next stage will be determined by whether or not the key principles of health remain positive. The roadmap is subject to change based on CDC guidance and new information.

Stage one (March 24th – May 4th) involved the closure of all non-essential businesses, schools, and retail stores. All Hoosiers were encouraged to stay home, maintain social distancing, and not participate in social gatherings with more than 10 people.

Stage two (May 4th – May 21st) allowed for the reopening of several business sectors, including personal services such as hair salons, barber shops, and spas. Restaurants and bars were also reopening at 50% capacity, along with retail stores and indoor common areas. Religious services were allowed to convene and asked to consider guidance provided by the state to safely worship. Meanwhile, those who worked in office settings were encouraged to continue to work remotely.

Stage three (May 22nd – June 13th) allows for social gatherings of up to 100 people or less to take place so long as they follow social distancing guidelines. Various other businesses may reopen in this stage including:

  • Retail stores at 75% capacity
  • Gyms
  • Community tennis and basketball courts
  • Community pools
  • Campgrounds
  • Youth summer day camps
  • Daycare facilities
  • Raceways with no spectators

Stage four (projected to begin June 14th) allows for social gatherings of up to 250 people or less to take place so long as they follow social distancing guidelines. Nursing homes will remain closed to visitors and Hoosiers 65 and older are asked to remain cautious at work and in their communities. Additional businesses may reopen in this stage including:

  • State government buildings
  • Professional office buildings at full capacity
  • Retail stores at full capacity
  • Dining room service at 75% capacity
  • Bars and nightclubs at 50% capacity
  • Cultural, entertainment, and tourism sites may reopen at a capacity to be determined
  • Movie theaters and bowling alleys at 50% capacity
  • Youth and adult recreation games may resume
  • Raceways may open to spectators
  • Pari-mutuel horse racing with no spectators
  • Charity gaming and casinos (subject to approval by Indiana Gaming Commission)
  • Amusement parks and water parks at 50% capacity

Stage five (projected to begin July 4th) allows all businesses to open at full capacity and restrictions to be lifted. Assisted living and nursing homes will continue to be evaluated during this time.

Governor Holcomb has issued specific industry guidelines that should be closely adhered to throughout the Back on Track reopening process. For additional information and updates regarding the Back on Track plan, please visit https://www.backontrack.in.gov/

PPP Forgiveness Interim Final Rules Issued

By Christopher Hanewald

The Department of the Treasury (Treasury) and Small Business Administration (SBA) celebrated the holiday weekend early by releasing new Interim Final Rules (Rules) concerning the Paycheck Protection Program’s (PPP) forgiveness calculation. In general, the Rules build upon the application for forgiveness which was released on May 15, but do not address the biggest concerns of businesses—an expansion of the 8-week Covered Period or an elimination of the 75% payroll cost mandate. While both the Senate and House are expected to vote on bills this week which will address those aforementioned concerns, meaningful resolution of those issues will likely not come quick enough for those PPP recipients who received loans in early to mid-April. As of May 23, the SBA had authorized 4,426,118 loans for a total of $511,231,948,095 leaving about $138 billion authorized and available PPP funds remaining.

The Rules:

  • Alternative Method for Covered Period – Borrowers with pay cycles of biweekly or more frequent are permitted to elect an alternative payroll Covered Period which allows for a Borrower’s Covered Period to commence on the first day of the pay period following receipt of PPP funds.
  • Inclusion of Bonus or Hazard Pay – The Rules expand the definition of eligible payroll costs to include bonuses or hazard pay so long as those payments do not cause an employee’s pro-rated payroll costs to exceed the $100,000 threshold.
  • Self-Employed and Owner-Employee Cap – The Rules established a cap on the amount of loan forgiveness available  which is limited to the lesser of 8/52 of 2019 compensation (i.e., no more than 15.38% of 2019 compensation) or $15,385 per individual in total.
  • When is a non-payroll cost ‘incurred’? – Importantly, the Rules provide much needed clarification that non-payroll costs must be paid or incurred during the 8-week Covered Period and paid on or before the next regular billing date—even if that date is beyond the Covered Period. Additionally, the Rules reiterate that advance payments on mortgage interest are not eligible for forgiveness.
  • Refusal to be Rehired – The Rules further expand upon the de minimis exception provided by Question 40 of the FAQs concerning employees who refuse to be rehired following an offer of employment. In particular, the Rules reaffirm that such a reduction of employees will not affect a Borrower’s request for forgiveness so long as the Borrower can demonstrate: (i) the Borrower made a good faith, written offer to rehire; (ii) the offer was for the same salary or wages and same number of hours; (iii) the offer was rejected by the employee; (iv) the Borrower maintained the record documenting the offer; and (v) the Borrower informed the applicable state unemployment insurance office of the rejected offer.
  • Definition of Full-Time Equivalent – Due to the CARES Act failing to provide a definition of full-time equivalents, the Rules provide that a full-time equivalent employee is one working 40 hours per week. Additionally, the Rules elaborate on the method for calculating less than full-time employees using the following example:

“For example, if an employee were paid for 30 hours per week on average during the covered period, the employee could be considered to be an FTE employee of 0.75. Similarly, if an employee were paid for ten hours per week on average during the covered period, the employee could be considered to be an FTE employee of 0.25.”

  • Proportional Reduction related to 75% Payroll Requirement – Perhaps the most important piece of information to come out of the Rules relates to the dreaded 75% payroll expense requirement. After much uncertainty, the Rules clarify that a Borrower who does not use the PPP loan proceeds to pay 75% towards eligible payroll costs will not suffer a ‘cliff effect’ from a forgiveness standpoint. Rather, the amount eligible to be forgiven is simply reduced according to a percentage calculation based on full-time equivalents during the reference period divided by full-time equivalents during the Covered Period.
  • Reduction in Wages or Employees – Finally, the Rules provide further guidance by way of an example to prevent Borrowers from being doubly penalized for reductions:

“Example: An hourly wage employee had been working 40 hours per week during the borrower selected reference period (FTE employee of 1.0) and the borrower reduced the employee’s hours to 20 hours per week during the covered period (FTE employee of 0.5). There was no change to the employee’s hourly wage during the covered period. Because the hourly wage did not change, the reduction in the employee’s total wages is entirely attributable to the FTE employee reduction and the borrower is not required to conduct a salary/wage reduction calculation for that employee.”

SBA Issues Forgiveness Guidance for Lenders & PPP Loan Forgiveness Checklist

By Caryn F. Price

Interim Final Rules issued by the Small Business Administration and Treasury Department late Friday night provide additional guidance to lenders on forgiveness of loans made under the Paycheck Protection Program.  Under the rules:

Lender’s Duties With Respect to Forgiveness Applications.  For all loan forgiveness applications, the lender will be required to confirm receipt of the borrower certifications contained in the application and the documentation borrowers must submit to aid in verifying payroll and non-payroll costs, as well as confirm the borrower’s calculations on the application. Lenders also must confirm that the borrower made the loan forgiveness calculation correctly, by dividing the borrower’s eligible payroll costs claimed by 0.75.  Lenders are expected to perform a good-faith review, in a reasonable time, of the borrower’s calculations and supporting documents.

Reliance on Borrower Representations.  The rules provide that lenders may rely on borrower representations. However,  if the lender identifies errors in the borrower’s calculation or a material lack of substantiation in the borrower’s supporting documents, the lender must work with the borrower to remedy the issue. Lenders will not need to independently verify the borrower’s reported information if the borrower submits documentation supporting its forgiveness request and attests that it accurately verified the payments for eligible costs.

Decisions on Loan Forgiveness Applications.  The lender must issue a decision to the SBA on a loan forgiveness application not later than 60 days after receipt of a complete application from the borrower. That decision may take the form of an approval in whole or in part, denial, or, if directed by the SBA, a denial without prejudice due to a pending SBA review of the loan. In the case of a denial without prejudice, the borrower may subsequently request that the lender reconsider its application unless the SBA has determined that the borrower is ineligible.

When the lender issues its decision to the SBA, it must request payment from the SBA and include the loan forgiveness calculation form and Schedule A.  Subject to any SBA review of the loan or loan application, the SBA will remit the appropriate forgiveness amount to the lender, plus any interest accrued through the date of payment, within  90 days. If the lender determines that the borrower is not entitled to forgiveness in any amount, the lender must provide the SBA copies of Schedule A and the PPP borrower demographic information form (if submitted to the lender).  In either case, the lender must confirm that the information provided by the lender to the SBA accurately reflects its records for the loan, and that the lender made its decision in accordance with applicable requirements. The lender must also notify the borrower in writing that the lender has issued a decision to the SBA denying the loan forgiveness application.

SBA Review of PPP Loans.  The SBA may review any PPP loan at any time in its discretion.  That review may examine the borrower’s eligibility, the calculation of the loan amount, whether the borrower used the loan proceeds for allowable uses and whether the borrower is entitled to loan forgiveness in the amount claimed in the borrower’s loan forgiveness application.  If the SBA undertakes such a review, the SBA will notify the lender in writing and the lender must then notify the borrower.  In addition, the lender will be required to transmit to the SBA, among other things, electronic copies of the borrower application (SBA Form 2483 or lender’s equivalent form), and the loan forgiveness application, if any (SBA Form 3508 or lender’s equivalent form), as well as all supporting documentation provided by the borrower. The lender must also request that the borrower provide a copy of the Schedule A worksheet to the loan forgiveness application and submit the worksheet to the SBA. 

If the loan documentation submitted to the SBA or any other information indicates that the borrower may be ineligible for a PPP loan or may be ineligible to receive the loan amount or loan forgiveness amount claimed, the lender will be required to contact the borrower to request additional information and provide any additional information provided to the SBA.  If the SBA notifies the lender that it has commenced a loan review, the lender may not approve an application for loan forgiveness until the SBA notifies the lender in writing that it has completed its review.

SBA Denial of Forgiveness Application.  The SBA may direct a lender to deny a loan forgiveness application if it determines that a borrower is ineligible for the PPP loan.  It may direct a  lender to deny an application, in whole or in part, if it determines that the borrower is ineligible for the loan amount or loan forgiveness amount claimed.  It may also seek repayment of the outstanding PPP loan balance or pursue other available remedies.

Document Retention.  Lenders must comply with applicable SBA requirements for records retention, which for Federally regulated lenders means compliance with the requirements of their federal financial institution regulator.

Eligibility for Processing Fees.  Lenders will be required to forfeit and repay to the SBA any lender processing fee received for any SBA-reviewed PPP loan if, within one year after the loan was disbursed, the SBA determines that a borrower was ineligible based on the provisions of the CARES Act or applicable rules or guidance available at the time of the borrower’s loan application, or the terms of the loan application.  If a lender fails to satisfy its applicable obligations, the SBA may also seek repayment of the lender processing fee from the lender and may determine that the loan is not eligible for a guaranty.

PPP Loan Forgiveness Checklist

Required Documentation for Borrower’s Forgiveness Application:

  • confirm receipt of the borrower certifications contained in the forgiveness application
  • confirm receipt and review the documentation borrower must submit to aid in verifying payroll and non-payroll costs
  • check the borrower’s calculations on the application (divide the borrower’s eligible payroll costs claimed by 0.75)
  • confirm the borrower has corrected any errors identified during the review

Within 60 days after receipt of complete Forgiveness Application:

  • issue decision to the SBA of lender’s decision on the loan forgiveness application
    • approval in whole or in part
    • denial
    • if directed by the SBA, a denial without prejudice due to a pending SBA review of the loan

Note:  If the SBA notifies the lender that it has commenced a loan review, the lender may not approve an application for loan forgiveness until the SBA notifies the lender in writing that it has completed its review.

  • request payment from the SBA and include the loan forgiveness calculation form and Schedule A
  • provide the SBA copies of Schedule A and the PPP borrower demographic information form (if submitted to the lender) if there is a determination that the borrower is not entitled to forgiveness in any amount
  • confirm that the information provided by the lender to the SBA accurately reflects its records for the loan, and that the lender made its decision in accordance with applicable requirements
  • notify the borrower of the lender’s decision on the loan (written notice of denial required)

When the SBA undertakes a review of a PPP loan:

  • notify the borrower if/when notified that SBA is undertaking review
  • transmit to the SBA electronic copies of the borrower application and the loan forgiveness application, as well as all supporting documentation provided by the borrower
  • request that the borrower provide a copy of the Schedule A worksheet to the loan forgiveness application and submit the worksheet to the SBA 
  • if required, contact the borrower to request additional information and provide any additional information provided to the SBA