The Small Business Administration (SBA) issued new guidance today, April 23, 2020, intended to prevent larger publicly traded companies from accessing the next round of Paycheck Protection Program (PPP) funding intended for small business relief. The new SBA guidelines require that companies applying for relief certify that the loans are necessary and that they cannot tap other sources of funding.

“It is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith,” the SBA said. A key detail of the SBA’s new position is that larger public companies will be able to avoid future scrutiny by returning the relief loans within the next two weeks should they have already received funds.

To see the SBA’s
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