The U.S. Department of Treasury issued a new version of its PPP FAQ yesterday. Included was a new question related to the eligibility of businesses owned by “private companies with adequate sources of liquidity to support the business’s ongoing operations.” The FAQ highlighted that borrowers must not only review applicable affiliation rules to determine eligibility, but also assess their economic need for the PPP. This guidance is the same guidance as was issued with respect to public company owners on April 23.

Any borrowers that applied for a PPP loan prior to the issuance of this guidance (April 28) and repays the loan by May 7, 2020 will be deemed to have made the certification in good faith.

The guidance further clarifies that, for purposes of loan eligibility, full-time and part-time employees are counted equally. For purposes of loan forgiveness, employees are counted on a full-time equivalent basis.

The full FAQ is available here.