CARES Act: Paycheck Protection Program Guidance Updated

The Small Business Administration (the “SBA”), in consultation with the U.S. Department of the Treasury (the “Treasury”), continues to issue guidance on the Paycheck Protection Program (the “PPP”) by updating its Frequently Asked Questions (the “FAQs”) guidance. The updated FAQs as of May 13, 2020 include additional guidance regarding (i) the SBA’s review process of a borrower’s required good-faith certification concerning the necessity of its PPP loan request (the “Necessity Certification”) and (ii) the further extension of the PPP loan repayment deadline for borrowers to repay their PPP loan proceeds and be deemed by SBA to have made the required Necessity Certification in good faith.  Also on May 13, 2020, the SBA posted an Interim Final Rule on Loan Increases (the “Interim Final Rule on Loan Increases”), which provides for certain partnership and seasonal employer PPP loan recipients to increase their PPP loans based on prior guidance on calculation of the maximum PPP loan amount.

To continue reading our alert on this topic, please click here.