SBA Interim Final Rule Limits PPP Loans for Corporate Groups to $20 Million
The U.S. Small Business Administration (SBA) issued an interim final rule limiting to $20 million the amount of Paycheck Protection Program loans that any single corporate group may receive. In this new rule, SBA states that borrowers who have applied for or received more than $20 million in loans must withdraw or cancel any pending application or approved loan over the $20 million limit. Further, the rule states that failure to do so will be regarded as a use of PPP funds for “unauthorized purposes” and the loan will not be eligible for forgiveness. This interim rule will take effect once it is actually published in the Federal Register, and it will be subject to a 30-day comment period.
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