[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-306238-105":53,"doc-detail-306238-en":126},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":119,"head_meta":121,"extra_data":123,"updated_unix":125},105,"en","paycheck-protection-program-regulatory-risk-creating-significant-regulatory-risk-for-borrowers","Paycheck Protection Program Regulatory Risk - Creating Significant Regulatory Risk for Borrowers","","Federal Government updates analyze how the Paycheck Protection Program (PPP) evolved under the CARES Act and subsequent funding recapitalization. After the initial $349 billion was exhausted on April 16, 2020, Congress added $310 billion on April 24, followed by multiple SBA interim final rules and FAQ revisions. The SBA’s guidance on borrower certification—especially “ability to access other sources of liquidity”—creates uncertainty and downstream legal exposure for borrowers and lenders, including underwriting and secondary-market resale risks.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":51,"@type":70,"position":76},"https://docshare.wps.com/template/general/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/paycheck-protection-program-regulatory-risk-creating-significant-regulatory-risk-for-borrowers/306238/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/paycheck-protection-program-regulatory-risk-creating-significant-regulatory-risk-for-borrowers/306238.png","ImageObject",442,249,{"name":88,"@type":89},"eBook King","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-09-21","2026-09-19",true,{"@type":98,"interactionType":99,"userInteractionCount":9},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"Why does the document emphasize regulatory risk for PPP borrowers?","Question",{"text":108,"@type":109},"It explains that SBA guidance and interim final rules evolved quickly, and a standard embedded in borrower certifications—such as assessing access to other liquidity—creates substantial uncertainty and legal exposure.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"What happened to PPP funding in April 2020?",{"text":113,"@type":109},"The document states the PPP exhausted its initial $349 billion appropriation on April 16, 2020, and Congress recapitalized it on April 24, 2020 with an additional $310 billion.",{"name":115,"@type":106,"acceptedAnswer":116},"How could lenders face risk even if the PPP provides underwriting protections?",{"text":117,"@type":109},"The document notes that underwriting protections do not insulate lenders from lawsuits related to borrower-selection processes, and they also remain exposed to risks tied to resale of PPP loans in the secondary market.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},306238,1789965072,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":50,"category_name":51,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":73,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":47,"language":135,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":136,"faqs":137,"seo_title":138,"seo_description":61,"update_tm":139,"read_time":73},962088006270,"https://ap-avatar.wpscdn.com/davatar_085a072bc5b1113ac321206ff7593b45","Insights: Federal Government Updates  \nPaycheck Protection Program, Creating Significant Regulatory Risk for Borrowers  \nThe Paycheck Protection Program, a component of the CARES Act intended to provide forgivable loans to small businesses as an incentive to keep workers on the payroll, exhausted its initial $349 billion appropriation on April 16, 2020. Congress recapitalized the program on April 24, 2020, with an additional $310 billion. With the new funding round has come several new rounds of regulatory pronouncements from the SBA. Significantly, the SBA now asserts that, subsumed in a borrower’s certification of necessity, is an “account” of whether the borrower has the “ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business.” This vague standard creates tremendous downstream risk for borrowers and underscores more generally the pitfalls for business of regulation-by-guidance-document. For PPP borrowers, the only certainty is uncertainty.  \nFor lenders, the program still contains significant protection from underwriting risk, but that has not insulated them from lawsuits regarding borrower-selection processes . Nor does it insulate lenders from the risk attendant to resale of PPP loans in the secondary market.  \nIn short, all participants in the PPP looking to manage risk should monitor closely the quickly changing regulatory landscape .  \nBackground  \nOn March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Among other avenues of relief, the CARES Act created the Paycheck Protection Program (PPP) and allocated $349 billion to provide largely forgivable loans for small businesses suffering financial distress related to Covid-19. The Small Business Administration, in early April, posted two Interim Final Rules and a Frequently Asked Questions guidance document, which further spelled out the program’s details and requirements . 1 On April 14, the SBA promulgated a third Interim Final Rule, further clarifying the program’s requirements. 2  \n1 Bus . Loan Program Temporary Changes, Paycheck Prot. Program, 85 Fed. Reg. 20,811 (Apr. 3, 2020) (to be codified at 13 C.F.R pt. 120); Bus. Loan Program Temporary Changes; Paycheck Protection Program, 85 Fed. Reg. 20817 (Apr. 3, 2020) (to be codified at [13 C.F.R. pt](13 C.F.R. pt). 121); Small Business Administration, Paycheck Protection Program Loans Frequently Asked Questions (FAQs) (April 26, 2020), available at [https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf](https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf).  \n2 Small Business Administration, Interim Final Rule, Bus. Loan Program Temporary Changes, Paycheck Prot. Program—Additional Eligibility Criteria and Requirements for Certain Pledges of Loans, (April 14, 2020) (to be codified at [13 C.F.R. pt. 120](13 C.F.R. pt. 120)), available at  \n[https://home.treasury.gov/system/files/136/Interim-Final-Rule-Additional-Eligibility-Criteria-and-Requirements-for-Certain-Pledges-of](https://home.treasury.gov/system/files/136/Interim-Final-Rule-Additional-Eligibility-Criteria-and-Requirements-for-Certain-Pledges-of)Loans.pdf.  \nSoon thereafter, on April 16, the SBA announced that the PPP had exhausted its funding, with many applicants not having received loans . 3 The PPP, and the financial institutions through which the SBA administers the program, were criticized for lending to publicly traded companies, more than 200 of which have thus far disclosed receiving PPP loans.4 Treasury Secretary Steven Mnuchin stated on April 21 that the “intent of this money was not for big, public companies that have access to capital.” 5  \nOn April 24, 2020, President Trump signed into the law the Paycheck Protection Program and Health Care Enhancement Act (“Enhancement Act”). As it pertains ","cbCaimhOHKtUFkvw","https://ap.wps.com/l/cbCaimhOHKtUFkvw","pdf",221488,"English","# Background\n## CARES Act and initial PPP funding\n## Interim final rules and FAQ revisions\n# Key Regulatory Developments\n## Borrower certification and liquidity standard\n## Safe harbor concept in later FAQ\n# Important Considerations for PPP Participants\n## Risk from rapidly changing pronouncements","[{\"question\":\"Why does the document emphasize regulatory risk for PPP borrowers?\",\"answer\":\"It explains that SBA guidance and interim final rules evolved quickly, and a standard embedded in borrower certifications—such as assessing access to other liquidity—creates substantial uncertainty and legal exposure.\"},{\"question\":\"What happened to PPP funding in April 2020?\",\"answer\":\"The document states the PPP exhausted its initial $349 billion appropriation on April 16, 2020, and Congress recapitalized it on April 24, 2020 with an additional $310 billion.\"},{\"question\":\"How could lenders face risk even if the PPP provides underwriting protections?\",\"answer\":\"The document notes that underwriting protections do not insulate lenders from lawsuits related to borrower-selection processes, and they also remain exposed to risks tied to resale of PPP loans in the secondary market.\"}]","Paycheck Protection Program Regulatory Risk - Creating Significant Regulatory Risk for Borrowers | PDF",1789834558]