Quick Legal Insights

  • The historical SBA affiliation rules do not necessarily apply to PPP and other CARES Act loan eligibility.
  • A U.S. subsidiary of a foreign-owned company may qualify for CARES Act loan programs.
  • Recently published SBA FAQs provide additional clarity that foreign-owned companies may want to consider, even if their loan application was already rejected.

Many U.S. subsidiaries of foreign parents have been asking whether they qualify for the PPP or other CARES Act loan programs. Like many other U.S. companies, they are experiencing the impacts of the COVID-19 pandemic.