COVID-19 Alert #9 – The Paycheck Protection Program: Considerations For Businesses
April 2020
This memo is designed to highlight some of the key components of the Paycheck Protection Program. In short, the Paycheck Protection Program temporarily permits the Small Business Administration (“SBA”) to guarantee 100% of small business loans to eligible borrowers and provides for forgiveness of up to the full principal amount of qualifying loans so guaranteed. The goal is to provide relief to America’s small businesses quickly in light of the devastating impact of the COVID-19 emergency, utilizing banks, credit unions and possibly other lenders to facilitate funding.
In this alert we address the following questions regarding the Paycheck Protection Program (“PPP”) for small businesses:
- What are the basics?
- Who is eligible?
- What are the affiliation rules?
- What can the proceeds of PPP loans be used for?
- How should eligible borrowers calculate the maximum amount of loans to which they may be entitled?
- How do eligible businesses apply for PPP loans?
- How much of the loan will be forgiven?
- How do PPP loans work with my existing debt documentation?
- What are the risks of taking assistance if ineligible?
Read the full client alert below.
