September 19, 2020

Volume X, Number 263

September 18, 2020

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September 17, 2020

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September 16, 2020

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Treasury Issues Additional FAQs Related to Economic Need for Privately Owned Companies and Employee Count

The U.S. Department of Treasury issued a new version of its PPP FAQ yesterday. Included was a new question related to the eligibility of businesses owned by “private companies with adequate sources of liquidity to support the business’s ongoing operations.” The FAQ highlighted that borrowers must not only review applicable affiliation rules to determine eligibility, but also assess their economic need for the PPP. This guidance is the same guidance as was issued with respect to public company owners on April 23.

Any borrowers that applied for a PPP loan prior to the issuance of this guidance (April 28) and repays the loan by May 7, 2020 will be deemed to have made the certification in good faith.

The guidance further clarifies that, for purposes of loan eligibility, full-time and part-time employees are counted equally. For purposes of loan forgiveness, employees are counted on a full-time equivalent basis.

The full FAQ is available here.

© Polsinelli PC, Polsinelli LLP in CaliforniaNational Law Review, Volume X, Number 120


About this Author

Phil Feigen of the Polsinelli Law Firm Corporate Transaction Attorney, in Washington DC
Office Managing Partner

Phil Feigen brings a unique perspective to providing general corporate advice, as well as complex business counsel to clients in ever-changing regulatory environments.  For more than 20 years, Phil has been providing guidance with respect to Small Business Investment Companies and other Small Business Administrative regulations, federal and state banking laws and federal securities laws. 

Phil focuses on helping clients through the SBIC licensing process so that they may realize the benefits of the program and increase the amount of investment...

Sara C. Ainsworth Securities & Corporate Finance Attorney Polsinelli Washington, D.C.

As an associate in the Securities & Corporate Finance practice, clients rely on Sara Ainsworth to work with Polsinelli’s team of attorneys to analyze each transaction matter to develop a strategic approach to representation based on the client’s immediate and long-term business and operational goals.

Working closely with seasoned Polsinelli attorneys in the Securities & Corporate Finance practice, Sara helps deliver a range of legal services during the life cycle of the client’s business—from selecting the appropriate choice of entity through to exit strategy.  Her practice focuses on:

  • Planning and executing capital-raising transactions
  • Drafting and negotiating key commercial agreements
  • Money service business and banking applications and registrations
  • Mergers and acquisitions and other strategic transactions
  • Fund formation, including regulated funds such as Small Business Investment Companies

Sara supports clients in a variety of industries, including the financial technology and mobility industries. Collaborating with attorneys from other related practices allows Sara and the entire attorney team to provide clients with comprehensive legal advice designed to minimize liability, maintain flexibility, and advance the client’s objectives.