New Guidance on SBA Review of Certification of Necessity under Paycheck Protection Program
Vinson & Elkins – On May 13, 2020, the Department of the Treasury and the Small Business Administration (“SBA”) released guidance on how SBA will review a borrower’s required certification that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” All applicants for loans under the Paycheck Protection Program (“PPP”) established by the CARES Act are required to make this certification. The guidance is found in Frequently Asked Question (“FAQ”) 46 available on Treasury’s website.
