CARES Act Small Business Loans Today: Keeping Up and Ensuring Compliance

The Small Business Administration has released two draft Interim Final Rules, as well as a final application and additional guidance – including on affiliation – on the overhauled Paycheck Protection Program loans, implementing Sections 1102 and 1106 of the CARES Act. Since the passage of the legislation, with only limited preliminary guidance and now-superseded applications from both Treasury and SBA, businesses and lenders have been scrambling to understand loan eligibility, how to apply, and key loan terms. The new SBA Form 2483, confirmation of the applicable affiliation test, and the two draft Interim Final Rules reflect significant developments.