SBA Programs Under The CARES Act: ‘Affiliation' Interim Final Rules And Guidance

A key feature of the CARES Act $2 trillion relief package is the creation of the Paycheck Protection Program (PPP), which authorizes $349 billion for businesses to obtain loans of up to $10 million per applicant to be used on payroll, benefits, rent and other costs from February 15, 2020, through June 30, 2020. The PPP will be administered by the Small Business Administration (SBA) under the umbrella of its 7(a) business loan regime. On April 3, 2020, the Treasury issued interim final rules (Paycheck Protection Program – Interim Final Rule on Affiliation) and associated guidance (Paycheck Protection Program – Applicable Affiliation Rules) on how to determine whether an entity is an affiliate of an applicant for this purpose.