Client Alert: U.S. Treasury and SBA Offer Additional Guidance on “Paycheck Protection Program” (PPP)

On March 27, 2020, Congress approved the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) to provide financial assistance to individuals and businesses. Title I of the CARES Act (the “Keeping Workers Paid and Employed Act”) includes several provisions intended to help small business suffering the adverse economic effects of the coronavirus (“COVID-19”). Among those is the establishment of a new loan program called the “Paycheck Protection Program” (“PPP”) and the allocation of $349 billion for the making of PPP loans. Additionally, for eligible borrowers, a portion, and potentially all, of the amount of funds borrowed under this program may be forgiven without payment. Our full description of the PPP is available here. This Client Alert, written by Anthony Zeoli, Steven Hartmann, Karen Hayes, and Meghan Tepas, details what this means for businesses.