PPP: Phase 2 Considerations Around ‘Necessity’ and Forgiveness

With the signing of an additional $484 billion coronavirus spending package on April 24, the government has expanded funding for the Paycheck Protection Program to approximately $670 billion dollars in total loans available to qualifying businesses.
 
As most are aware, obtaining a PPP loan requires a certification of necessity. How this applies to applicants in our ecosystem has been a source of much debate and uncertainty. Additionally, the PPP allows for forgiveness of these loans if borrowers use the funds to cover specified costs, including payroll, benefits and rent, subject to certain limitations. But what else should companies think about before applying for forgiveness?
 
Join us as we unpack the latest guidance and discuss key considerations surrounding the “necessity” certification and PPP loan forgiveness, including potential interplays between the two.
 
Topics include:

• Key considerations in making the necessity certification when applying for a PPP loan, as well as re-considering the same in light of the new FAQs issued on April 23 and Interim Final Rules issued on April 24
• Risks associated with making the necessity certification
• Considerations in applying for PPP loan forgiveness, including risks, timing and intervening events
• The potential interplay between intervening events – such as third party financings or changes of business circumstances – and a board’s decision to seek forgiveness versus repaying the loan (including before May 7)

Speakers:

• Erin Estevez – Special Counsel, Cooley
• Danny Grooms – Partner, Cooley
• Danielle Naftulin – Partner, Cooley

For more information or to request a recording of this webcast, please email Savannah Euler