SBA Caps the Aggregate Amount of PPP Loans Each Corporate Family Can Receive
Client Alert | 1 min read | 05.01.20
On April 30, 2020, the Small Business Administration (SBA) released an interim final rule imposing a $20 million cap on the aggregate amount of loans a single corporate group can receive from the Paycheck Protection Program (PPP). Given the high demand for PPP loans and finite appropriations, the SBA has imposed this limit in order to ensure PPP funds reach the largest possible number of borrowers.
Businesses are part of a single corporate group if they are majority owned, directly or indirectly, by a common parent based on the broad definition in the interim final rule. This cap applies without limitation even to those businesses that are eligible for the otherwise applicable waiver-of-affiliation provisions.
This cap applies to PPP loan funds that have not yet been fully disbursed as of April 30, 2020. This means that the cap applies not only to all PPP loans to be made in the future but also to any loans that have only been partially disbursed. The interim final rule makes it incumbent on PPP recipients and applicants to determine if they will receive PPP loans in excess of the cap and withdraw or request cancellation of any pending PPP loan application or approved PPP loan not in compliance with this rule. The Crowell & Moring Team is closely watching these developments and is standing by to confer with companies about the impact of this new loan ceiling.
Insights
Client Alert | 8 min read | 05.19.25
Earlier this month the National Cyber Security Centre (“NCSC”) hosted CYBERUK, the UK government’s flagship cybersecurity event. On 7 May the NCSC launched their report “Impact of AI on cyber threat from now to 2027” (“Report”), whilst the Department for Science, Innovation and Technology (“DSIT”) published a new voluntary Software Security Code of Practice, (“Code”). Cybersecurity and AI are under the spotlight in the UK. Eyes are also on the recently unveiled US/UK trade agreement and the possibility of a further transatlantic tech-focused agreement to cement prior Technology and Data Partnership discussions to create a US/UK “digital bridge.”
Client Alert | 2 min read | 05.19.25
Client Alert | 3 min read | 05.16.25
