PPP Loan Standard Of Necessity Hinges On Documentation
On April 28, U.S. Treasury Secretary Steven Mnuchin told large companies they should apologize for taking Paycheck Protection Program loans. This loan program was established by the Coronavirus Aid, Relief and Economic Security, or CARES, Act, enacted March 27, and it is administered by the Small Business Administration.
While the PPP was designed primarily to help small businesses retain employees on their payrolls during the coronavirus outbreak, the CARES Act provides several exceptions allowing additional businesses to participate. Applicants for PPP loans are required to make several certifications including: “Current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” Read entire article here.
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