Payroll Protection Program SBA Loans UPDATED

Executive Summary  

Small businesses with no more than 500 employees may take advantage of expanded eligibility criteria for the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans.  The Department of the Treasury released guidance the night of April 6, 2020 that clarified that, while the affiliation rules apply for determining the number of employees, a business and its affiliates is considered a small business and eligible for a PPP Loan if they have 500 or less employees residing in the U.S.

The clarification greatly expands the availability of PPP Loans to foreign owned U.S. subsidiaries. Updated information is indicated in bold and underline.

PPP Loan Background