On April 24, 2020, an additional $310 billion was authorized
under the Paycheck Protection Program (PPP), a key aspect of the
CARES Act relief package. The program, administered by the Small
Business Administration (SBA), provides for loans of up to $10
million per small business applicant to be used on payroll,
benefits, rent and other authorized costs from February 15, 2020,
through June 30, 2020.
The SBA also issued additional interim final rules under the
PPP to supplement previous guidance on several important,
discrete issues. Of particular note, this most recent guidance
clarifies that:
- Portfolio companies of private equity
funds are eligible to receive PPP loans, but are reminded to
carefully review the required borrower certification stating that
"current economic uncertainty makes the loan request necessary
to support the ongoing operations of the [portfolio
company]."
