Nebraska regulator clarifies eligibility of lender affiliates for PPP loans

State Issues Covid-19 Nebraska SBA Lending

The Nebraska Department of Banking and Finance re-posted FAQs from the Department of the Treasury and Small Business Administration regarding the Paycheck Protection Program. The FAQs clarify that lenders are permitted to make PPP loans to companies owned in whole or in part by an outside director or a less than 30 percent equity holder of the lender, provided no favoritism or prioritization of the director’s or equity holder’s company is involved. This does not apply to companies owned in whole or in part by directors or owners that are key employees of the lender.