Is My Company’s PPP Loan “Necessary to Support Ongoing Operations?” What If I’m Wrong?
Morrison Foerster – Given the proliferation of adverse news articles and TV pundit segments about well-funded companies that have received federal, Small Business Administration (SBA) loans under the Paycheck Protection Program (PPP), it is important to separate what guidance has now been issued and what appears to be more political rhetoric than law. As discussed below, companies should take agency guidance seriously and consider (and document) the issues raised, but legitimate small business PPP recipients can to a large extent take with a grain of salt what amounts to political sabre rattling in a time where specific large companies are being pilloried in the press.
