On April 24, 2020, the Small Business Administration (SBA) published an Interim Final Rule (IFR) governing the Paycheck Protection Program (PPP) of the Coronavirus Aid, Relief and Economic Security Act (CARES Act). In Section 2 of the IFR, entitled “Clarification Regarding Eligible Businesses,” the SBA expressly foreclosed the ability of hedge funds and private equity firms to obtain PPP loans:
Hedge funds and private equity firms are primarily engaged in investment or speculation, and such businesses are therefore ineligible to receive a PPP loan. The Administrator, in consultation with the Secretary, does not believe that Congress intended for these types of businesses, . . ., to obtain PPP financing.
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