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Do businesses owned by large companies with adequate sources of liquidity to support the business’s ongoing operations qualify for a PPP loan?
Borrowers must certify in good faith that their PPP loan is a necessity. Borrowers should review carefully the certification that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” Borrowers must also take into account their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business. For example, it is considered unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith.
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