We just reviewed the first of the inevitable onslaught of loan documents related to the Paycheck Protection Program (“PPP”) under the federal CARES Act. Funds are ready to be disbursed to some applicants. The documents we have reviewed look like “normal” loan documents on Laser Pro forms, but do not include any references to the PPP or CARES Act. Remember that a PPP promissory note can be sold to another institution. At a minimum, a PPP note should specifically reference that it is subject to all of the terms of the CARES Act (116 H.R. 748). Please closely review your loan documents before signing them.
