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 readingAs the social isolation saying goes: “Another day; another clarification from the SBA regarding the Paycheck Protection Program.” Alright, maybe that saying hasn’t caught on, yet. Nevertheless, the SBA did publish additional guidance specific to sole proprietors and general partners applying to the Paycheck Protection Program (PPP).
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 readingThe title of this post is a touch misleading. Of course the Paycheck Protection Program is helping small businesses. But is it helping the right ones, and is it helping enough of them? Our post last week on the Paycheck Protection Program elicited a lot of feedback. From this feedback and what we’ve heard anecdotally, it’s been tough for many small businesses to get these loans.
But there may be ways for Congress, the SBA, and lenders to make this program–or any similar program that Congress is considering–to help out small businesses more equitably. Below are some questions that policy makers should consider when modifying the Paycheck Protection Program or crafting a similar program in the future.
Continue reading