Pub. 2 2020 Issue 2

M A R C H / A P R I L 2 0 2 0 8 nebraska cpas BY JEFFERY SCHAFFART AND BENJAMIN HERBERS, KOLEY JESSEN CARES ACT PAYCHECK PROTECTION PROGRAM FREQUENTLY ASKED QUESTIONS AS OF APRIL 5, 2020 C O U N S E L O R ’ S C O R N E R Below is an FAQ Koley Jessen prepared to address some of the common questions on the new $349 billion SBA loan program, known as the Paycheck Protection Program, included in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). On April 2, 2020, the Small Business Administration (SBA) issued its Interim Final Rule implementing the sections of the CARES Act applicable to the Paycheck Protection Program (the Rules) (Docket No. SBA- 2020-0015). On April 3, 2020, the SBA issued Affiliation Rules Applicable to the U.S. Small Business Administration Paycheck Protec tion Prog ram (t he A f f i l i a t ion Ru le s). The be low i s intended to be a general summary of the applicable statutory provisions of the CARES Act, the Rules, and the Affiliation Rules. Please also note that the provisions described below are subject to additional regulations and guidance to be promulgated by the SBA and the U.S. Treasury Department. A copy of the application for the Paycheck Protection Program is available on the Treasury Department’s website. Still, we encourage all prospective borrowers to contact their lenders for the information and documentation the specific lender will require. What is the Paycheck Protection Program? The Paycheck Protection Program is an expansion of the loan program created under Section 7(a) of the Small Business Act. The loans are made by private lenders and will be guaranteed by the SBA. Private lenders approve the loans pursuant to authority delegated by the SBA in accordance with criteria and requirements established by the SBA; no separate SBA approval is needed.