UPDATE: Congressional COVID-19 Stimulus: Small Business Loan Expansions
On April 3, 2020, the SBA released an additional Interim Final Rule supplementing the Initial Interim Final Rule with additional guidance regarding the application of affiliation rules (the “Second Interim Final Rule”). On April 6, 2020, the SBA released a list of frequently asked questions and answers that provided guidance on a number of issues related to the Payroll Protection Program Loans. As of the date of this updated memorandum, there remains a strong lobbying effort from several impacted constituencies and letters from members of Congress sent to the SBA Administrator to, among other things, further clarify the affiliation rules to provide a further bright-line test.
This updated memorandum supersedes the Firm’s April 2nd memorandum on this topic and covers the latest available information on the 7(a) Loan Program and EIDLP loans which are impacted by the recent legislation.