The Department of Treasury and Small Business
Administration have issued additional guidance related to the
Paycheck Protection Program (PPP) following recent publicity
regarding certain recipients. Their focus has been on the
certification contained in the application that the proceeds of a
PPP loan are necessary to support the ongoing operations of an
applicant.
On April 23, 2020, the Treasury Department's updated FAQ
stated that borrowers, in making the certification that current
economic uncertainty makes this loan request necessary to support
the ongoing operations of the applicant, must take into account
current business activity and their ability to access other sources
of liquidity sufficient to support their ongoing operations in a
manner that is not significantly detrimental to the business. By
its terms, the guidance applies to all borrowers, however public
company applicants were specifically called out, stating that
“it is unlikely that a public company
