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ARTICLE · 19 NOVEMBER 2020

SBA's New Paycheck Protection Program Appeal Rule

Bradley
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Section 1106 of the act allowed for forgiveness of PPP loans for amounts expended on payroll, mortgage interest, rent, and utilities.

United StatesGovernment, Public Sector
Aron C. Beezley
Aron C. Beezley
Patrick R. Quigley
Patrick R. Quigley

As part of Bradley's continued reporting on issues arising from the CARES Act and the Paycheck Protection Program (PPP) that uniquely impact government contractors, we summarize here a new Small Business Administration (SBA) loan decision appeal rule.

Background on the New Rule

On March 27, 2020, the CARES Act became law. Section 1102 of that act established the PPP, which created a program administered by the SBA to extend emergency loans to small businesses to cover a variety of payroll and other business expenses that the businesses may have trouble paying because of COVID-19-related business disruptions. Subject to several exceptions, the act generally defined "small businesses" as businesses that would already be considered small under existing SBA rules or had 500 or fewer employees. Section 1106 of the act allowed for forgiveness of PPP loans for amounts expended on payroll, mortgage interest, rent, and utilities.

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