On April 2, the Small Business Administration (SBA) issued an interim final rule (Docket No. SBA-2020-0015) in regards to the Business Loan Program Temporary Changes; Paycheck Protection Program. We are concerned for small business owners, including dentists, that this interim final rule contradicts congressional intent of the CARES Act on how the Paycheck Protection Program (PPP) loans can be utilized alongside Economic Injury Disaster Loans (EIDL).
Through this rule, Treasury and the SBA have disallowed any borrower that receives EIDL loan funds after April 3 from being able to apply for PPP loans. The rule also outlined restrictions on the use of the loans by stating that the PPP and EIDL loans are not allowed to be used concurrently for the same purpose. We believe this interim final rule contradicts the congressional intent of the CARES Act.
Take action today and tell Secretary Mnuchin and Administrator Carranza to uphold the intent of the CARES Act by changing the interim rule to clearly indicate that entities can apply for both loans and that they are still eligible to apply for both even if EIDL loan funds are received after April 3.