In the last few days, the Small Business Administration (SBA) provided additional answers to frequently asked Paycheck Protection Program (PPP) questions and published yet another interim final rule on the administration of PPP loans. Applicants and borrowers should be aware of these updates to ensure compliance with the latest program requirements and avoid any non-compliance
PPP Funds Expanded and SBA Provides Continued Guidance on PPP Loans
On April 24, 2020, the Paycheck Protection Program and Health Care Enhancement Act was signed into law and provided an additional $310 billion for the Paycheck Protection Program (PPP). The Small Business Administration (SBA) resumed accepting PPP loan applications on April 27, 2020. In light of the quick exhaustion of initial PPP loan funds, eligible
SBA Updates PPP Guidance on “Current Economic Uncertainty” Certification
On April 23, 2020, the Small Business Administration (SBA) updated its Answers to Frequently Asked Questions about the Paycheck Protection Program (PPP). Among the most noteworthy updates is the following answer provided by the SBA about the so-called “current economic uncertainty” certification that PPP borrowers are required to make:
Question: Do businesses owned by large
New SBA Guidance for Partnerships and LLCs Applying for Paycheck Protection Program Loans
On April 14, 2020, the Small Business Administration (SBA) posted an additional Interim Final Rule for the Paycheck Protection Program (PPP). This new Interim Final Rule functions as a supplement to the first PPP Interim Final Rule posted on April 2, 2020. The April 14, 2020, Interim Final Rule is effective immediately and gives guidance
SBA Issues Continued Guidance on PPP Loans
On April 7, 2020, the Small Business Administration (SBA) issued additional guidance on the Paycheck Protection Program (PPP) in the form of answers to frequently asked questions about the PPP. According to the new guidance, actions taken by lenders or borrowers that conform to the guidance, the SBA’s Interim Final Rule, and any subsequent
What Small Businesses Need to Know about New PPP Guidance
Last week, the Small Business Administration (SBA) published its Interim Final Rule providing formal guidance on the implementation of the Paycheck Protection Program (PPP) authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Under the PPP, the SBA is authorized to guarantee a total of $349 billion in loans through June 30,
CARES Act: Small Business Loan Eligibility & “Affiliation” Issues Explained
As we discussed in a previous article, the Coronavirus Aid, Relief, and Economic Security Act, known as the “CARES Act,” provides much-needed relief to “small” businesses in several areas, including by appropriating substantial money to support the 7(a) Loan Program and the Economic Injury Disaster Loan (EIDL) Program.
However, determining whether one’s
How the CARES Act Benefits Small Businesses
In response to the COVID-19 pandemic, Congress recently passed, and President Trump signed, the Coronavirus Aid, Relief, and Economic Security Act, known as the CARES Act. Described in the media as the “largest emergency aid package in U.S. history,” this unprecedented $2.2 trillion economic rescue package promises to “deliver a tidal
SBA to Provide Loans to Small Businesses Impacted by COVID-19
The U.S. Small Business Administration (SBA) recently announced that it is offering designated states and territories low-interest federal disaster loans “for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).” According to SBA, “[u]pon a request received from a state’s or territory’s Governor, SBA will issue under its
All Means All: Who “Controls” an SDVOSB?
A recent bid protest appeal decision by the U.S. Court of Appeals for the Federal Circuit — XOtech, LLC v. United States — provides clear guidance on what it means to “control” a service-disabled veteran-owned small business (SDVOSB). In short, for a limited liability company (LLC) to qualify as an SDVOSB, at least one service-disabled