The Small Business Administration on Saturday updated its set of frequently asked questions on the Paycheck Protection Program. The updated FAQs clarify that the Financial Crimes Enforcement Network’s April 2020 PPP FAQs still apply to second-draw PPP loans. They also clarify that lenders may rely on information obtained from a borrower during a first-draw loan application for a second-draw application, provided the borrower is an existing customer.
The SBA noted that the other PPP FAQs are in the process of being revised and do not as yet reflect changes made by the most recent COVID-19 relief law.
In addition, the SBA published a set of FAQs on the Shuttered Venue Operators Grants that were created by the law. According to the FAQs, borrowers are only eligible to receive either a second-draw PPP loan or a SVOG loan, not both. To qualify for an SVOG loan, borrowers must be live venue operators or promoters, theatrical producers, live performing arts organization operators, museum operators, motion picture theater operators, and talent representatives and must have been in operation as of Feb. 29, 2020.
