Highlights
- A new Interim Final Rule from the U.S. Small Business
Administration (SBA) solidifies Paycheck Protection Program (PPP)
counting rules, stating that all employees, foreign and domestic,
of a business and its affiliates (absent an exception) count for
purposes of size limitations.
- The SBA will not deem a business that applied for a PPP loan
prior to May 5, 2020, ineligible based on the exclusion of foreign
employees – citing "reasonable borrower
confusion."
The U.S. Small Business Administration (SBA) published a new Interim Final Rule (IFR) on May 18, 2020,
related to the Paycheck Protection Program (PPP) created by the
Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The
IFR clarifies that borrowers must count all employees, both foreign
and domestic, for purposes of the size limitations of the PPP,
subject to certain exceptions to affiliation.
