Dear ABC Central Ohio Members,

After the Small Business Administration (SBA) issued its “interim final rule” for the Paycheck Protection Program, the Associated Builders and Contractors sought clarification on eligibility requirements to assure members of the rule’s intent.  Late last night, the SBA and US Department of Treasury confirmed ABC’s interpretation of the rule in a release of FAQs for lenders and borrowers. Importantly, the FAQs clarifies that businesses do not have to qualify as both a small business concern AND have 500 or fewer employees.

Question: Does my business have to qualify as a small business concern (as defined in section 3 of the Small Business Act, 15 U.S.C. 632) in order to participate in the PPP? 

Answer: No. In addition to small business concerns, a business is eligible for a PPP loan if the business has 500 or fewer employees whose principal place of residence is in the United States, or the business meets the SBA employee-based size standards for the industry in which it operates (if applicable). Similarly, PPP loans are also available for qualifying tax-exempt nonprofit organizations described in section 501(c)(3) of the Internal Revenue Code (IRC), tax-exempt veterans organization described in section 501(c)(19) of the IRC, and Tribal business concerns described in section 31(b)(2)(C) of the Small Business Act that have 500 or fewer employees whose principal place of residence is in the United States, or meet the SBA employee-based size standards for the industry in which they operate.

While information about the current status of PPP loans made has come out piecemeal, U.S. National Economic Council Director Larry Kudlow stated yesterday that there are commitments for $38 billion worth of loans— 130,000 loans themselves from 2,400 lenders. Bank of America confirmed yesterday that it had received applications from 177,000 small businesses for a total of $32.6 billion in financing. The current Bank of America numbers are its applications and do not represent the sums the Small Business Administration has approved.

The next legislative package is likely to replenish funding for PPP loans as the biggest concern has been that the PPP program might prove too popular and small business owners are concerned that if they aren’t among the first in line, they might be left behind. The Trump administration and the program’s congressional champions have moved quickly to tamp down such concerns:

  • President Trump tweeted on Saturday that he will “immediately ask Congress for more money” should the program’s $349 billion allocation run out.”
  • Treasury Secretary Steven Mnuchin says he will go to Congress to ask for more small business loan funding if the current $350 billion pool goes quickly.
  • Senate Small Business Committee Chairman and PPP chief author Marco Rubio (R-FL) estimated in a lengthy thread that the initial tranche of funds could run out as soon as June 6th. He also pledged to work his congressional colleagues to secure additional funding for PPP in a general update on the state of the program.
ABC continues to urge eligible members in need to apply for PPP loans. For additional SBA resources view:

If you have any comments, questions, or concerns, please contact me at or by telephone at 614-597-3591.


Barton Hacker