The Paycheck Protection Program (PPP) has been steadily monitored and adjusted by the U.S. Treasury Department, along with the Small Business Administration (SBA). Recently, they issued a guidance for loan requests and whether or not they meet necessity requirements.
This guidance discussed a few things. Borrowers must have their loan request be necessary in order to continue their business needs. A safe harbor was set at $2 million, meaning that loans of less than $2 million are qualified to be considered a necessity. If the loan is over $2 million, the reasoning may be subject to further review, which could lead to penalties if the necessity did not have an adequate basis.
Small businesses can benefit greatly if they are struggling, and the guidance gives more information for their decisions moving forward. Big "I" will continure to provide more information on this as it comes.
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