Client Alert: Do I Really “NEED” a Paycheck Protection Program (PPP) Loan and, if I Already Got One, Should I Give it Back?

The “Paycheck Protection Program” (PPP) was established as part of Title I of the CARES Act (entitled the “Keeping Workers Paid and Employed Act”). The most recent “Frequently Asked Questions” (FAQ) released by the U.S. Small Business Administration (SBA) (in cooperation with the U.S. Department of Treasury) in connection with the PPP contains a section cautioning would be and existing borrowers that they must certify, or in the case of those that have already received a PPP loan have certified, that their respective PPP loan is actually “necessary” given their respective economic situation and that such borrower may be required to provide evidence supporting such determination if required by the SBA. In addition to the warning, the subject response also includes a safe harbor for those who have received PPP loan funds and, upon reconsideration on of their “needs,” return the loan funds by May 14, 2020.  Learn more in this Client Alert written by Freeborn Partner Anthony Zeoli

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