April 6, 2020

To our clients and friends:

On April 2, 2020, the Small Business Administration (“SBA”) issued its interim final rule (the “Interim Final Rule”) regarding the implementation of the Paycheck Protection Program (“PPP”), which was authorized pursuant to the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) recently signed into law.

Under the PPP, SBA and other qualifying lenders can originate up to $349 billion in loans to eligible businesses that would be fully guaranteed as to principal and interest by the SBA, have more favorable terms than traditional SBA loans and may be forgiven if the loan proceeds are used by the borrower for certain purposes.

Our Alert, which provides information about the PPP based upon the CARES Act and the Interim Final Rule, is available here.

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