ESOP Sponsors and Paycheck Protection Program Loans

Many businesses are preparing to apply for loans under the Paycheck Protection Program of the Coronavirus Aid, Relief and Economic Security Act (the “Act”). On March 31, 2020, the U.S. Department of Treasury (the “Treasury Department”) provided a sample loan application, which contains instructions for completing the application form. The instructions indicate that each applicant who is an individual, as well as each 20% or greater owner of an applicant business, must sign and certify the application. The following parties are the designated “owners” of the applicant business.  

PDF of the Client Alert: ESOP Sponsors and Paycheck Protection Program Loans.