April 23, 2020

Today, the U.S. Treasury Department posted additional Frequently Asked Questions (FAQs) to its Paycheck Protection Program (PPP) guidance to reduce the likelihood of PPP loans going to large companies. Specifically, FAQ number 31 cautions that a public company with substantial market value and access to capital markets will not be able to make the required PPP certifications in good faith that their PPP loan request is necessary. This FAQ also provides that any borrower that applied for a PPP loan prior to the issuance of this guidance should repay the loan in full by May 7, 2020 and will be deemed by SBA to have made the required certification in good faith—implying they will avoid future scrutiny as to the veracity of their certifications.

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