After President Trump signed the bill on Sunday night, many bosses heard that the current round of PPP loans had provisions specifically for Chinese shareholders.
According to this clause, entities established or organized under the laws of the People’s Republic of China or Hong Kong Special Administrative Region, or entities with important businesses in the People’s Republic of China or Hong Kong Special Administrative Region, directly or indirectly own or hold the economic interests of the business entity or entity20% or more, Including the equity, capital, profit rights and interests of limited liability companies and partnerships; or the board of directors isResidents of the People's Republic of China, Cannot apply for the second round of PPP.
But it should be noted thatNon-Chinese residents (US green cards, US citizens, etc.) are not restricted.The original text of the attached law is as follows:
"(AA) for which an entity created in or organized under the laws of the People's Republic of China or the Special Administrative Region of Hong Kong, or that has significant operations in the People's Republic of China or the Special Administrative Region of Hong Kong, owns or holds, directly or indirectly, not less than 20 percent of the economic interest of the business concern or entity, including as equity shares or a capital or profit interest in a limited liability company or partnership; or
(BB) that retains, as a member of the board of directors of the business concern, a person who is a resident of the People's Republic of China"
Reference:
https://www.forbes.com/sites/alangassman/2020/12/21/ppp-and-eidl-loan-changes-after-the-coronavirus-response-and-relief-supplemental-appropriations-act/?sh=2aad5b225b4f
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