CARES Act: SBA Clarifies Eligibility for Self-Employed Individuals under Paycheck Protection Program and Pledges of PPP Loans | Practical Law
On April 17, 2020, the Small Business Administration (SBA) issued a third interim final rule (IFR) to clarify the eligibility criteria and rules for self-employed individuals under the SBA’s Paycheck Protection Program (PPP) created under Title 1 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (Pub. L. No. 116-136 (H.R. 748)) and to clarify requirements for certain pledges of PPP loans. The IFR clarifies that self-employed individuals and certain directors and shareholders of PPP lenders are eligible to apply for PPP loans. In addition, the requirements for loan pledges under 13 CFR 120.434 do not apply to PPP loans pledged for borrowings from a Federal Reserve Bank (FRB) or advances by a Federal Home Loan Bank (FHLB).