SBA bars private equity firms, hedge funds from PPP loans

In new guidance, the Small Business Administration spells out that hedge funds and private equity firms are not eligible to get Paycheck Protection Program loans under the CARES Act.

The loans, intended to keep small businesses afloat during the coronavirus pandemic, will mostly turn to a grant if the borrower keeps or re-hires employees for a specific amount of time.

It doesn’t completely rule out private equity-owned businesses from getting the loans, but urges them to think carefully about the required certification that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”

Previously: Treasury urges publicly traded companies to return PPP loans (April 23)

https://seekingalpha.com/news/3564266-sba-bars-private-equity-firms-hedge-funds-from-ppp-loans