Fed extends rule allowing PPP loans to directors

The Federal Reserve Board again extended its rule allowing certain bank directors and shareholders to apply to their banks for Paycheck Protection Program loans for their small businesses.

The SBA clarified last year that lenders may make PPP loans to businesses owned by their directors and certain shareholders. The rule extension is effective immediately and applies to PPP loans made through March 31, consistent with SBA's rules and restrictions.

Additional PPP information and resources are available on the SBA and Treasury sites and ICBA's PPP and EIP News page.