Corporate, Securities & Tax

On July 6, 2020, the Small Business Administration (SBA), in coordination with the Department of the Treasury, released data about borrowers who applied for and received money from the Paycheck Protection Program (PPP). Borrowers who received PPP loans of at least $150,000 are mentioned by name; borrowers who received PPP loans under $150,000 are not mentioned by name. Here are the other important details:

Borrowers Who Received at Least $150,000:

• In addition to borrower name, certain other information pertaining to the borrower was included in the release including the borrower’s address (street, city, state, and zip code), loan approval date, lender and congressional district are all published.
• The information does not include the exact amount of PPP loan received; instead, one of five ranges is listed for each recipient: $5–10 million, $2–5 million, $1–2 million, $350,000–$1,000,000, and $150,000–350,000.

Borrowers Who Received Less than $150,000:

• These borrowers are referenced generically by the amount of the loan, city, state, zip code, NAICS code, business type, demographic information, loan approval date, lender, and congressional district.

It is important for PPP borrowers to review the information that was released and confirm that it is accurate (including the relevant NAICS code). Because it is now public information, borrowers should anticipate receiving questions regarding the PPP loan they received and be prepared to respond, if they choose to respond.

This alert was written by Joshua R. Chazen, a lawyer in the Washington, D.C. office at Miles & Stockbridge.

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