PPP Loan Indemnification Clause Samples
The PPP Loan Indemnification clause requires one party to compensate the other for losses or liabilities arising from issues related to Paycheck Protection Program (PPP) loans. Typically, this clause applies if a company received a PPP loan and there is a risk that the loan may not be forgiven or that there could be penalties due to misrepresentations or non-compliance with PPP requirements. Its core function is to allocate the risk of financial loss or regulatory action related to PPP loans, ensuring that the party responsible for the loan bears the consequences of any related problems.
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PPP Loan Indemnification. Notwithstanding anything to the contrary contained in Section 10.1(a) or Section 10.1(b), the representations and warranties set forth in Section 4.27, and the indemnification obligations of the Members in Section 10.2(a)(vii) shall survive the Closing until 11:59 pm (Eastern time) on the date that is six (6) years following the date on which the PPP Loan has been discharged in full (whether by forgiveness or repayment) or such later date that is the final date of the period during which the U.S. Small Business Administration may conduct audits or reviews of the PPP Loan pursuant to the CARES Act (such date, the “PPP Termination Date”).
PPP Loan Indemnification. Notwithstanding anything to the contrary contained in Section 8.1(a) or Section 8.1(b), the representations and warranties set forth in Section 3.28, and the indemnification obligations of the Indemnifying Securityholders in Section 8.2(a)(vii) shall survive the Closing until 11:59 pm (Pacific time) on the date that is six (6) years following the date on which the PPP Loan has been discharged in full (whether by forgiveness or repayment) (such date, the “PPP Termination Date”).