On April 26, 2020, the Small Business Administration published an updated set of “Frequently Asked Questions” from both lenders and borrowers participating (or seeking to participate) in the loans offered under the CARES Act’s Paycheck Protection Program. Some of these same questions and answers had previously been published, many are rather technical in nature, and – most importantly – many other questions posed by employers remain unanswered. Nevertheless, our clients may want to review the guidance, especially as it relates to exceptions to the 500-employee cap, the requirement for applying the SBA’s “affiliation” rules in determining loan eligibility, and franchisor-franchisee issues. The Guidance FAQ’s may be accessed at https://www.sba.gov/document/support–faq-lenders-borrowers.
Because legal developments pertaining to COVID-19 are constantly evolving, we recommend that our clients call the Kullman Firm attorney(s) with whom they work for the most current guidance on these matters.