New PPP Guidance Clarifies Affiliation Rules If a Business Sponsors an ESOP

The Paycheck Protection Program and Health Care Enhancement Act (the ?Ç£PPP/HCE Act?Ç¥), signed into law on April 24, 2020, clarified how the affiliation rules apply to businesses that sponsor employee stock ownership plans (?Ç£ESOPs?Ç¥). According to the PPP/HCE Act, for purposes of the Paycheck Protection Program, a business?ÇÖs participation in an ESOP will not result in an affiliation between the business and the ESOP (or with the participants in the ESOP). A copy of the PPE/HCE Act can be found here.