Small Business Administration

On May 13, 2020, the Small Business Administration (“SBA”) issued anxiously awaited guidance outlining the agency’s perspective on the good faith certifications made by Paycheck Protection Program (“PPP”) applicants. (See, PPP Frequently Asked Questions, #46).

PPP recipients of loans less than $2 million found relief in the SBA’s statement that it would deem those recipients to have made the certification in good faith.

For those with PPP loans at or above $2 million, the SBA will require the recipient to adequately support its certification. If the recipient fails to do so, the SBA indicated it will seek repayment of the loan in full, but the agency will not pursue administrative enforcement or refer the matter to other agencies.


Continue Reading SBA Issues New Guidance Addressing PPP Loan “Good Faith” Certification

April 30, 2020 Update

The IRS has issued Notice 2020-32, which provides further guidance on some certain tax consequences associated with PPP loans. In particular, the IRS has confirmed that expenses paid with PPP loans will not be deductible to the extent attributable to the portion of the loan forgiven.

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Following up on my post earlier this week regarding the CARES Act Payroll Protection Program Update: SBA Issues Some Guidance and Sample Application, the Final Rule has been issued and may be found here.

A summary of the highlights include:
Continue Reading COVID-19: SBA Issues Payroll Protection Program Loan Interim Rule Effective April 2, 2020

According to the SBA’s website for the Payroll Protection Program (PPP):

  1. Applications may be open as early as April 3rd,and lenders may be able to approve the applications the same day;
  2. The unforgiven portion of any PPP loan will have a maturity of 2 years and a 1.0% interest rate; and,
  3. The SBA is imposing  another loan  forgiveness condition – “due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll”.


Continue Reading CARES Act Payroll Protection Program Update: SBA Issues Some Guidance and Sample Application