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Corporate financing under the US Government’s “Paycheck Protection Program”. Access by foreign-owned companies under U.S. law

Washington, April 10, 2020. With the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), the US government has introduced a wide range of instruments to mitigate the negative effects of Covid-19. Such tools range from loans and grants for businesses to personal income support measures, from the expansion of the social safety net to increased health care spending.

One of the most significant measures for Small and Medium-Sized Enterprises is the “Paycheck Protection Program (PPP)”. The Program has allocated $350 billion to SMEs employing fewer than 500 people in the US. It aims at avoiding layoffs and closures and supporting enterprises in the most acute months of the emergency.

The Small Business Administration (SBA) has informed that foreign-owned businesses can also access the Program.  PPP is designed to protect US workers regardless of the nationality of the company’s controlling partners and whether or not they have permanent residence.