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President Trump Signs Law Easing PPP Forgiveness Restrictions

Sarah Longson
06/08/2020
COVID-19
On June 5, 2020, President Trump signed the PPP Flexibility Act  into law.  The Act is intended to address some of the flaws in the Payroll Protection Program and subsequent guidelines that were revealed after borrowers attempted to navigate the requirements for use of loan proceeds in order to qualify for loan forgiveness. The PPP Flexibility Act consists of seven changes related to forgiveness, itemized below. PPP borrowers can choose...
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The SBA Releases PPP Loan Forgiveness Application, Instructions and Formal Guidance

Sarah Longson
05/28/2020
Business Law, COVID-19
The SBA released the long-awaited PPP loan forgiveness application form and instructions, as well as Formal Guidelines replacing previous guidance on loan forgiveness. Loan Forgiveness Process A borrower must submit the Loan Forgiveness Application (SBA Form 3508) to its lender, together with necessary documentation identified in the application.  The lender will decide regarding loan forgiveness sixty (60) days from receipt of the application...
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SBA Issues New Guidance on PPP "Safe Harbor" for Loans Less Than $2 Million

Sarah Longson
05/14/2020
COVID-19
On April 23, 2020, following the disclosure that well-heeled companies like Shake Shack, Ruth’s Chris Steakhouses, and the Los Angeles Lakers had applied for, and received, large PPP loans,  the SBA issued guidance providing that any PPP Borrower, and particularly large borrowers, risked being deemed to have filed the required good faith certificate of need in bad faith if they had the ability “to access other sources of liquidity sufficient...
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Treasury Issues New Guidance on Payroll Protection Program

Sarah Longson
04/05/2020
COVID-19
On April 2, 2020, the Treasury Department released guidelines for the Paycheck Protection Program (“PPP”) small business loans that were made available to businesses with 500 or fewer employees under the CARES Act.  The guidelines, termed “Interim Final Rule,” announced some material departures from the language of the Act itself.  Those departures represent significant changes related to how loan funds may be used, the time to...
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