Treasury, SBA Clear Way for Smaller PPP Loans
Smaller businesses won't be penalized for taking the loans
Wednesday, the U.S. Treasury and Small Business Administration (SBA) clarified that businesses seeking less than $2 million in emergency relief under the Paycheck Protection Program (PPP) will be considered qualified unless proven otherwise.
The government agencies said the “safe harbor” should reassure smaller businesses they will not be penalized for taking on the loans. They added that the government would not pursue penalties for any companies that improperly received such loans if the companies pay the money back.
The guidance is aimed at reassuring smaller businesses considering the emergency relief that they will not end up facing a costly or complex audit or penalty for failing to meet some of the program’s terms.
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