Situation Report | October 13, 2020
CDC Update on “How COVID-19 Spreads”
The U.S. Centers for Disease Control and Prevention (CDC) has updated its document on “How COVID-19 Spreads.”
It clarifies that COVID-19 can sometimes be spread by airborne transmission, in addition to airborne droplet and less commonly from surface transmission. There has been no update or change to guidance on precautions the general public should take to lessen or prevent the spread of COVID-19.
SBA Guidance on PPP Loans
The Small Business Association (SBA) recently issued comprehensive guidance and procedures for Paycheck Protection Program (PPP) borrowers on changes in the borrower’s ownership or sale of assets.
The guidance has an effective date of October 2, 2020.
For purposes of the PPP, a “change of ownership” means: 1) at least 20 percent of the common stock or other ownership interest is sold or otherwise transferred, including to an affiliate or an existing owner of the entity; 2) sale or transfer of at least 50 percent of assets (measured by fair market value); or 3) merger with or into another entity.
Regardless of any such changes, the PPP borrower remains responsible for all obligations, certifications (including the certification of economic necessity), and compliance with all other applicable PPP requirements. This includes obtaining, preparing, and retaining all required PPP forms and supporting documentation.