Affiliate Headcount Determination
Does the PPP lender need to confirm if the borrower has any affiliates whose employees must be included in the borrower’s count of employees?
The lender is not required to confirm whether a borrower has any affiliates whose employees must be included in the borrowers count of employees. This is something that the borrower is expected to determine and certify is accurate.
Reminder for borrowers:
Pay special attention to the following language which you will certify in your application: “I further certify that the information provided in this application and the information provided in all supporting documents and forms is true and accurate in all material respects. I understand that knowingly making a false statement to obtain a guaranteed loan from SBA is punishable under the law, including under 18 USC 1001 and 3571 by imprisonment of not more than five years and/or a fine of up to $250,000; under 15 USC 645 by imprisonment of not more than two years and/or a fine of not more than $5,000; and, if submitted to a federally insured institution, under 18 USC 1014 by imprisonment of not more than thirty years and/or a fine of not more than $1,000,000.”