As we said in this space a few days ago, the SBA has put in place a safe harbor until May 14 for companies to return Paycheck Protection Program loan money if they find they don’t need it. No harm, no foul.
So, what happens if they don’t need it, but don’t return it? Maybe Clubber Lang said it best.
Continue readingOn Monday, May 4, the SBA will issue another Interim Final Rule updating the Paycheck Protection Program—this time limiting the “aggregate amount of PPP loans that any single corporate group may receive.”
Continue reading**Update 5/6/2020: As of May 5, the SBA updated its PPP FAQ’s, announcing its intention to extend the PPP Safe Harbor period to May 14. This post has been updated to reflect this change.
***Update 5/14/2020: As of May 14, the SBA updated its PPP FAQ’s once again, announcing its intention to extend the PPP Safe Harbor period to May 18. This post has been updated a second time to reflect this change. The SBA has also supplemented its guidance on the Safe Harbor Provision, as discussed here.
If you’re a parent, you might be familiar with the SBA and Treasury Department’s current strategy to crack down on businesses taking Paycheck Protection Program funds when they don’t qualify: if ineligible businesses ‘fess up and return the money by May 14, nobody gets in trouble.
Continue readingWe’ve written a lot about the Paycheck Protection Program as part of the blog’s COVID-19 coverage. The program has really been helping a lot of businesses, so much so that the money ran out a few days ago.
Well, the Senate has approved a bill that would replenish funds for the Paycheck Protection Program, so more companies can get help.
Continue readingI hope all of our readers are doing well and staying healthy. Here at SmallGovCon, we’ve been monitoring the ongoing updates from the federal government for news relevant to federal contractors.
This week, our attorney-authors provided a few more updates about relief for contractors and other businesses under the Paycheck Protection Program as well as other governmental policies. Updates included the formal Paycheck Protection Program rules and guidance on applying for loans for independent contractors and partnerships, as well as SBA’s policies for HUBZone flexibility.
Unfortunately, SBA’s website now states that it is “currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding.” In other words, the funds have run out.
But there were many other stories as well, such as a prediction that CMMC will apply to all government procurements, use of the Defense Production Act, and DOD accommodating contractors affected by COVID-19.
Continue readingThe SBA is set to release two interim final rules on the Paycheck Protection Program (PPP). While much of the SBA’s guidance and procedure for these loans has already been discussed and released on SBA’s website, this is SBA’s formal rulemaking that aggregates all of the rules on eligibility and how to apply.
The rulemaking also provides a chance for businesses to provide feedback to SBA on what is and isn’t working the program.
Continue readingWell, we thought we had this figured out. Yet here we are a week later and we keep hearing conflicting reports.
The question remains, can a foreign-owned company receive a Paycheck Protection Program loan or not? Let’s try to figure it out.
Continue reading