Many businesses that the Paycheck Protection Program is intended to help may be unfamiliar with the web of government regulations involved in SBA loans and the government enforcement apparatus that polices compliance with these regulations. The rapid deployment of the PPP required by the current economic emergency resulted in multiple questions related to loan eligibility and use of funds. Businesses are faced with several near term deadlines associated with PPP loans including verification of eligibility for the loan and the use of loan proceeds within eight weeks of receiving the loan. Topics covered in this presentation include:
- Background on the CARES Act and the PPP Loan program;
- Loan eligibility requirements including thorny questions arising from the government’s shifting guidance on whether a loan is “necessary” for a business’s continuing operations;
- Rules for use of funds and forgiveness of PPP loans;
- Potential liability for businesses that violate regulations associated with PPP loan program;
- Pointers for compliance with PPP loan program regulations.