Earlier today, President Trump signed the $484 billion bill passed by the House Thursday afternoon and intended to provide additional relief to businesses impacted by the COVID-19 pandemic. The bill includes approximately $310 billion in additional funding for the Paycheck Protection Program (PPP). Of the $310 billion, $60 billion is reserved for smaller lenders, including community financial institutions, small insured depository institutions, and credit unions with assets less than $10 billion.
Unfortunately, hedge funds and private equity firms will be unable to take advantage of PPP loans. In its interim final rule, the Treasury Department clarified that hedge funds and private equity firms are primarily engaged in investment or speculation, and that Congress did not intend for these types of business to obtain PPP financing.
As more details of business relief efforts are made available, specifically those related to the investment industry, Kreischer Miller’s Investment Industry Group will provide additional updates. We also regularly update our COVID-19 Resource Center, which you can access here. If you have any questions about these or any other matters, please contact your Kreischer Miller relationship professional or any member of our team.
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