On April 29, 2020, the Small Business Administration (the “SBA”), in consultation with the Department of the Treasury, published updated Frequently Asked Questions that included one new Q&A about the SBA’s expected enforcement regime regarding loans under the Paycheck Protection Program (the “PPP”) issued under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). This guidance appears intended to supplement and give teeth to the guidance that was issued on April 23, 2020, regarding the certification that borrowers must certify that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” Our analysis of the certification guidance can be found here.

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