SBA / Treasury FAQ – 5. Are borrowers required to apply SBA’s affiliation rules under 13 C.F.R. 121.301(f)?

Compliance > CARES Act
Q:  Are borrowers required to apply SBA’s affiliation rules under 13 C.F.R. 121.301(f)?
 
A:  Yes. Borrowers must apply the affiliation rules set forth in SBA’s Interim Final Rule on Affiliation. A borrower must certify on the Borrower Application Formthat the borrower is eligible to receive a PPP loan, and that certification means that the borrower is a small business concern as defined in section 3 of the Small Business Act (15 U.S.C. 632), meets the applicable SBA employee-based or revenue-based size standard, or meets the tests in SBA’s alternative size standard, after applying the affiliation rules, if applicable. SBA’s existing affiliation exclusions apply to the PPP, including, for example the exclusions under 13 CFR 121.103(b)(2).
 
 

This Q&A was based on information contained from the Treasury Department’s May 27, 2020, version of “Paycheck Protection Program Loans, Frequently Asked Questions,” which is updated from time to time.  This CARES Act / SBA / PPP related issuance may be found here:  https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf

 
 

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