Corporate Services Partner David Cole was quoted in an Inc.
article discussing the newly updated deadline to apply for a Paycheck Protection Program (PPP) loan. The Small Business Administration and the U.S. Department of the Treasury announced that borrowers had until June 30 to apply for a loan. However, the statute establishing the PPP in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) says eligible borrowers may receive a loan during the "covered period," which would appear to extend beyond the month of June. Mr. Cole commented on the continued confusion.
"Treasury's announcement [on June 8] appears inapposite to the statute," he said. "...If Treasury were to promulgate a rule restricting new borrowing to the month of June, that rule could face [a] challenge in court."
READ: PPP Update: You Have Until June 30 to Apply