By: Mark A. Mangano
Telephone cooperatives that are exempt from federal income taxation under section 501(c)(12) of the Internal Revenue Code may be eligible for PPP loans if they meet the sized standards and other eligibility requirements of the PPP. On Friday, June 5, 2020 the Small Business Administration (SBA) Issued its Sixteenth interim final rule: “Business Loan Program Temporary Changes; Paycheck Protection Program-Eligibility of Certain Telephone Cooperatives.” Under the rule, telephone cooperatives will be treated as “a business entity organized for profit” under the SBA regulations. The rule appears here.