American Financial Services Association

AFSA asks SBA for PPP Clarification

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AFSA asks SBA for PPP Clarification

AFSA sent a letter to the Small Business Administration (SBA) on April 21. AFSA wrote, “Our letter focuses on PPP eligibility, specifically: (1) agreeing that all small businesses are eligible for PPP loans, and (2) asking that the SBA clarify that financial institutions are eligible for PPP loans.”

AFSA is pleased that the SBA states clearly in the March 2021 Interim Final Rule that a business is eligible for the PPP if it is, “A small business concern under the applicable revenue-based size standard established by SBA in 13 CFR 121.201 for … industry or under the SBA alternatives size standard.” We agree that this provision implements the letter and the spirit of the PPP.

At the same time, AFSA urged the SBA to clarify that financial institutions are eligible for the PPP and for loan forgiveness. provided that they met the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) requirements.

April 21st, 2021 by