On April 2, 2020, the Small Business Administration issued its first formal guidance on the Paycheck Protection Program (“PPP”) portion of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) that was signed into law last week. This guidance provides clarity on several aspects of the PPP loan program, which has started accepting applications today. Congress and the Treasury Department are also moving towards a solution to the so-called “affiliation rule” problem that is impacting the eligibility of certain venture- and private equity-backed businesses for PPP loans. Please see our Client Alert for further details on these important developments.
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