By Christopher N. Nelson
The U.S. Small Business Administration released interim guidance on implementation of the Paycheck Protection Program (“PPP”). This guidance, while not final and subject to change, is helpful to both small businesses and lenders as they participate in this program under which loans are available beginning April 3, 2020. In particular, Section 2 of this guidance contains specific information for PPP borrowers, Section 3 contains specific information for lenders, and Section 4 contains information for both borrowers and lenders.
Interim guidance has been released to discuss how affiliated entities and faith-based organizations may qualify for PPP loans along with FAQs about the loan program. In addition, the SBA administration has released this information about how independent contractors can qualify to receive and apply for loans under this program.
Significantly, PPP loans are to be issued on a “first-come, first-served” basis. While specific terms, conditions and eligibility requirements apply to PPP loans, many, if not most, small businesses may qualify.
If you have any questions about PPP loans or other COVID-19 assistance, please contact Ray Quinney & Nebeker’s COVID-19 Response Team.
Christopher N. Nelson has assisted numerous nonprofit and tax-exempt organizations with corporate and tax issues in connection with a variety of business and charitable transactions. He also represents for-profit corporate and limited liability company entities in a variety of business situations.