The U.S. Small Business Administration (SBA) issued more regulations for the Paycheck Protection Program (PPP).
- The disbursement of the PPP loan proceeds by the lender to the borrower must be done within ten (10) days of loan approval and in one disbursement.
- Lenders are required to cancel an approved, undisbursed loan if the borrower has not submitted the required loan documentation within twenty (20) days of loan approval.
Corporate Group Eligibility
- The aggregate amount of PPP loans that any single corporate group may receive is now limited.
- A single corporate group (businesses that are majority owned, directly or indirectly, by a common parent) may not receive more than $20 million of PPP loans in the aggregate.
- The limit will apply to any loan not yet fully disbursed as of April 30, 2020.
- The borrower is responsible to notify the lender if the aggregate limit applied for or received has been exceeded, and to withdraw or request cancellation of any PPP loan application or approved loan not in compliance with the aggregate limit.
- Failure by the applicant to do will be considered an unauthorized used of PPP funds and the loan will be deemed unforgivable.
- The single corporate group rule is in addition to the affiliate rules and limitations.
KRS professionals are available and happy to assist with loan and grant applications. We continue to update our Coronavirus Resources Page. Please contact us if you have any questions, concerns, or need advisement during this unprecedented time.