On April 15, 2020, the Small Business Administration (SBA) published an interim final rule (IFR) that supplements an earlier interim final rule with additional guidance regarding the application of certain affiliate rules applicable to the SBA's implementation of the Paycheck Protection Program (PPP).

The PPP was created under Title 1 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (Pub. L. No. 116-136 (H.R. 748)), and serves as a way for the SBA to help small businesses experiencing financial hardship due to the COVID-19 pandemic. The PPP offers partial or full forgivable loans to small businesses to cover payroll and certain other operational costs from February 15, 2020 to June 30, 2020. Loans up to 2.5x the borrower's average monthly payroll will be forgiven if at least 75% of the loan is used to pay payroll costs, and not more than 25% of the loan is used to pay mortgage interest, rent, or utilities during the eight weeks after the loan is made.

For more information on the interim final rule, see CARES Act: Stimulus for Small Businesses Under the SBA Checklist: CARES Act Paycheck Protection Program and Legal Update, CARES Act: SBA Clarifies Application of Affiliate Rules for Paycheck Protection Program.

The IFR is effective as of April 15, 2020; public comment is due on or before May 15, 2020.

Important Notice from the SBA: As of April 16, 2020, the SBA is not accepting new PPP, Economic Injury Disaster Loans (EIDL) or Emergency Economic Injury Grants (EEIG) applications based on available appropriations funding.