SBA Covid-19 Issuances
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Biden signs bills providing 10-year SOL on PPP and EIDL fraud
On August 5, President Biden signed the Paycheck Protection Program and Bank Fraud Enforcement Harmonization Act (see H.R. 7352 ) and the COVID-19 Economic Injury Disaster Loan Fraud Statute of Limitations Act (see H.R. 7334 ). H.R. 7352 provides a 10-year statute of limitations for fraud by...
Federal Issues, Federal Legislation, SBA, CARES Act, Covid-19, Small Business Lending, Biden
InfoBytesSBA says larger nonprofits eligible for PPP loan forgiveness
On July 8, the SBA added question #71 to its Paycheck Protection Program (PPP) frequently asked questions clarifying whether 501(c)(3) nonprofit organizations with more than 500 employees are eligible for PPP loan forgiveness. SBA explained that while the CARES Act generally provided that “501(c)(3...
Federal Issues, SBA, CARES Act, Covid-19, Small Business Lending
InfoBytesSBA says nonprofit lenders are eligible for PPP loan forgiveness
On May 5, the SBA added question #70 to its Paycheck Protection Program (PPP) frequently asked questions explaining that 501(c)(3) nonprofit lenders are eligible for PPP loan forgiveness provided they have complied with all applicable PPP rules aside from 13 CFR 120.110(b). 13 CFR 120.110(b)...
Federal Issues, SBA, CARES Act, Covid-19
InfoBytesSBA offers additional deferment for Covid-19 EIDL loans
On March 15, SBA extended the deferment period for the Covid-19 Economic Injury Disaster Loan (EIDL) program, to provide a total of 30 months deferment from inception on all approved Covid EIDL loans. The extended deferment of principal and interest payments on existing EIDL loans approved in...
Federal Issues, SBA, Covid-19, EIDL, Small Business Lending, CARES Act
InfoBytesDOJ announces $31,000 FCA settlement for duplicative PPP loans
On February 11, the DOJ announced a $31,000 settlement with an IT services company to resolve allegations that it violated the False Claims Act (FCA) by obtaining more than one Paycheck Protection Program (PPP) loan in 2020. According to the settlement agreement, in April 2020 the company received...
Federal Issues, Covid-19, CARES Act, SBA, DOJ, Enforcement, False Claims Act / FIRREA
InfoBytesBorrowers may request SBA loan review of partially forgiven PPP loans
On January 27, SBA issued Procedural Notice 5000-827666 outlining a new process for borrowers to request an SBA loan review of partially approved forgiveness decisions by their Paycheck Protection Program (PPP) lenders. Effective immediately, when a PPP lender receives a forgiveness remittance from...
Federal Issues, SBA, Small Business Lending, CARES Act, Covid-19
InfoBytesDistrict Court grants SBA’s summary judgment in Covid-19 relief disclosure case
On December 13, the U.S. District Court for the District of Columbia granted summary judgment in a Freedom of Information (FOIA) case in favor of the U.S. Small Business Administration (SBA) (defendant), resolving allegations that the agency improperly withheld loan payment status and tax-...
Courts, SBA, CARES Act, Covid-19, FOIA, Small Business Lending, Disclosures
InfoBytesDistrict Court says bank’s arbitration clauses apply to PPP loans
On November 23, the U.S. District Court for the District of New Jersey granted a national bank’s motion to compel arbitration in an action concerning the bank’s alleged mishandling of Paycheck Protection Plan (PPP) loan applications. The plaintiff filed a lawsuit claiming the bank’s PPP loan...
Courts, Covid-19, SBA, Arbitration, CARES Act, State Issues, Small Business Lending
InfoBytesDistrict Court dismisses PPP putative class action against nonbank
On November 24, the U.S. District Court for the Central District of California dismissed , with prejudice, a putative class action alleging that a nonbank lender prioritized high-dollar Paycheck Protection Program (PPP) loan applicants. The plaintiff’s complaint—which alleged claims of fraudulent...
Courts, Covid-19, Small Business Lending, SBA, Class Action, CARES Act, Nonbank, State Issues, California
InfoBytesSBA updates Covid-19 EIDL guidance
On November 19, the Small Business Administration (SBA) announced updated guidance for Covid-19 Economic Injury Disaster Loan (EIDL) program applicants while funding remains available. The updated guidance provided that (i) the deadline to submit EIDL loans and targeted advance applications will be...
Federal Issues, SBA, Small Business Lending, EIDL, Covid-19
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