The Coronavirus Aid, Relief, and Economic Security Act, known as the “CARES Act,” provides much-needed relief to “small” businesses in several areas, including by appropriating substantial money to support the 7(a) Loan Program and the Economic Injury Disaster Loan Program. However, determining whether one’s business is, in fact, an eligible “small” business has already proven to be confusing and complicated, even for sophisticated applicants. Even more perplexing to many is the question of whether a business is legally “affiliated” with another business, such that the businesses will be viewed together for loan eligibility purposes and, when combined, may not be considered an eligible “small” business.
Reprinted with permission. Originally published by Bradley Arant Boult Cummings LLP. Copyright 2019.
