Part 10 – Economic Need for the PPP

Dear Clients and Friends,

Yesterday, April 29, 2020, the Department of Treasury updated the PPP FAQs. Question 31 (which was added on April 23, 2020 providing guidance to all businesses but calling out public companies specifically) reminded all businesses of the certification of eligibility in the PPP loan application and the May 7, 2020 deadline for returning ineligible PPP loan proceeds. The PPP FAQ added Question 37 providing similar guidance to “businesses owned by private companies”(private equity or affiliated groups) and Question 39, alerting all companies who received a PPP loan in excess of $2million that the SBA will be reviewing the loan after the loan forgiveness application is submitted by the lender. If your company is publicly held, controlled by private equity or in an affiliated group, or received PPP loan proceeds over $2million you should formally document the eligibility certification.

We would be happy to assist management in the preparation of its required documentation. We are still awaiting final guidance on loan forgiveness from the SBA.

Please contact your BKM Sowan Horan team member with any questions.