COVID-19: The Small Business Administration Publishes Helpful Guidance Regarding Its New “Economic Necessity” Certification Requirement for Paycheck Protection Program (PPP) Loans

As a result of media criticism related to public companies obtaining loans under the CARES Act Paycheck Protection Program (PPP), the Small Business Administration (SBA) on April 23, 2020, updated its “Frequently Asked Questions” (FAQ) with an intention to clarify the meaning and scope of the “economic necessity” certification requirement. Our publication offers additional explanation for the guidance.