SBA / Treasury FAQ – 27. SBA regulations require a written statement of no objection by the pertinent Department or military service …. Does this requirement apply to PPP loans?

Compliance > CARES Act
Q:  SBA regulations require a written statement of no objection by the pertinent Department or military service before it provides any SBA Assistance, other than disaster loans, to an entity, if its sole proprietor, partner, officer, director, or stockholder with a 10 percent or more interest, or if a household member of any of the preceding individuals, is an employee of another Government Department or Agency having a grade of at least GS-13 or its equivalent. Does this requirement apply to PPP loans?
 
A:  No. The SCC has determined that a written statement of no objection is not required from another Government Department or Agency for PPP loans. However, see FAQ #26 for information for a borrower with a controlling interest (meaning 20 percent by vote or value of the outstanding amount of any class of equity interest) that is held directly or indirectly by the head of an Executive Department or the spouse of s uch person as determined under applicable common law.
 
 

This Q&A was based on information contained in the Treasury Department’s March 12, 2021, 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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