Congress Approves Significant Changes to SBA’s Paycheck Protection Program

As we reported in our previous alert , the bipartisan bill the Paycheck Protection Program Flexibility Act of 2020 , was passed on May 28, 2020 by the House of Representatives. Last night, the Senate passed the bill, which now heads to President Trump for his signature.  If signed into law by the President, the bill will make significant changes to SBA’s Paycheck Protection Program, including: Extend the “covered period” under which small businesses can spend the loan proceeds from eight weeks to 24 weeks or until December . . . Read More

SBA Issues Long-Awaited PPP Loan Forgiveness Application

SBA recently issued its 11-page Paycheck Protection Program Loan Forgiveness Application, linked here . The application walks borrowers through a step-by-step process to determine loan forgiveness amounts based upon the information the borrower enters. It is of note that the application does require borrowers to provide documentation to support the payroll and non-payroll costs paid using PPP Loan funds. This includes the following information to prove the funds were properly spent on covered liabilities incurred, or which became due, during the 8-week period following . . . Read More

SBA, Treasury Issue New Guidance Concerning Good-Faith Certification on the Necessity of Their Loan Request

On May 13, 2020, the Small Business Administration (“SBA”) and Treasury Department (“Treasury”) released new guidance  concerning good-faith certification for Paycheck Protection Program (“PPP”) loan requests. This new guidance clarifies that businesses seeking a PPP loan of less than $2 million will have made their request in good faith unless proven otherwise. SBA and Treasury released this guidance because they believe that borrowers within this safe harbor threshold do not have as much access to other sources of funds that larger loan . . . Read More

SBA Implements WOSB / EDWOSB Certification Requirement and Revises Economic Disadvantage Criteria for 8(a) Eligibility, Including Treatment of Retirement Accounts

Just under one year ago, we wrote  about the Small Business Administration’s (SBA) proposed rule regarding implementing a certification requirement for Women-Owned Small Businesses (WOSBs) / Economically Disadvantaged Women-Owned Small Businesses (EDWOSBs) and revised economic disadvantage criteria for 8(a) eligibility. SBA’s  final rule  was recently published, implementing just that. The rule will impact businesses seeking to compete for government contracts under the WOSB and 8(a) Business Development programs. WOSB / EDWOSB Certification Effective October 15, 2020, WOSB / EDWOSBs will be required to be . . . Read More

SBA Implements WOSB / EDWOSB Certification Requirement and Revises Economic Disadvantage Criteria for 8(a) Eligibility, Including Treatment of Retirement Accounts

Just under one year ago, we wrote  about the Small Business Administration’s (SBA) proposed rule regarding implementing a certification requirement for Women-Owned Small Businesses (WOSBs) / Economically Disadvantaged Women-Owned Small Businesses (EDWOSBs) and revised economic disadvantage criteria for 8(a) eligibility. SBA’s  final rule  was recently published, implementing just that. The rule will impact businesses seeking to compete for government contracts under the WOSB and 8(a) Business Development programs. WOSB / EDWOSB Certification Effective October 15, 2020, WOSB / EDWOSBs will be required to be . . . Read More

Affiliation in the Context of SBA Loans, Guidance for Venture Capital Investors

In this guidance document published by the National Venture Capital Association (NVCA), “Affiliation in the Context of SBA Loans, Guidance for Venture Capital Investors,”  PilieroMazza ’s Kathryn Hickey offers key takeaways for venture capital investors concerned about SBA affiliation rules in the context of SBA loans. To access the full article, please visit this  link . Ms. Hickey is Chair of the Firm’s  Business & Transactions Group , where she assists clients primarily in general business, mergers and acquisitions, venture capital and private equity investments, and commercial contracting. . . . Read More

Breaking Down SBA’s COVID-19 Economic Injury Disaster Loan

UPDATE: Since this alert was posted, all states and territories received an EIDL decaration.  Also note that loan terms will change with the CARES Act.  Please follow the linked text to PilieroMazza’s Client Alert “ Senate Passes Historic COVID-19 Stimulus Package: Billions Set Aside for Small Business ” for recent developments.     _____________________________________________________________________________________________________________________________________________________________________________________________________ The unprecedented impact of the COVID-19 pandemic on small businesses has caused the Small Business Administration (SBA) to institute an Economic Injury Disaster Loan (EIDL) program aimed at aiding those affected by the pandemic. Whether you’re a government contractor . . . Read More

BLOG: SBA Issues FAQs on New HUBZone Program Rules

Earlier this month, the Small Business Administration (SBA) issued its answers to frequently asked questions (FAQs) concerning the new rule changes to the HUBZone Program. These FAQs follow the December 26, 2019 effective date of the new HUBZone rules, and should be helpful for current and potential HUBZone firms. The FAQs address common confusions in the new rules.  For instance, SBA answers how to take credit for an employee who resided in a HUBZone as of the date of certification and for . . . Read More