10 Million Cap Affiliation Rules

How do the $10 million cap and affiliation rules work for franchises?

If a franchise brand is listed on the SBA Franchise Directory, each of the franchisees that meet PPP criteria can apply for a PPP loan. The $10 million cap applies separately to each franchisee. The franchise cannot apply on behalf of the franchisee. If your franchise brand has been denied listing on the Directory because of affiliation between franchisor and franchisee, you may request listing to participate in the PPP.

Linked here and pasted below is the text from the official question and answer document published by the Department of the Treasury, which you should reference:
https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf

Below is the official question from Q23 as of May 14, 2020

23. Question: How do the $10 million cap and affiliation rules work for franchises?

Below is the official answer from Q23 as of May 14, 2020

Answer: If a franchise brand is listed on the SBA Franchise Directory, each of its franchisees that meets the applicable size standard can apply for a PPP loan. (The franchisor does not apply on behalf of its franchisees.) The $10 million cap on PPP loans is a limit per franchisee entity, and each franchisee is limited to one PPP loan. Franchise brands that have been denied listing on the Directory because of affiliation between franchisor and franchisee may request listing to receive PPP loans. SBA will not apply affiliation rules to a franchise brand requesting listing on the Directory to participate in the PPP, but SBA will confirm that the brand is otherwise eligible for listing on the Directory.

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