SBA Extends Safe Harbor for Returning PPP Funds to May 18
The change is addressed in FAQ 47 in the SBA’s Paycheck Protection Program Loans Frequently Asked Questions (FAQs) document. FAQ 47 states:
Question: An SBA interim final rule posted on May 8, 2020 provided that any borrower who applied for a PPP loan and repays the loan in full by May 14, 2020 will be deemed by SBA to have made the required certification concerning the necessity of the loan request in good faith. Is it possible for a borrower to obtain an extension of the May 14, 2020 repayment date?
Answer: Yes, SBA is extending the repayment date for this safe harbor to May 18, 2020, to give borrowers an opportunity to review and consider FAQ #46. Borrowers do not need to apply for this extension. This extension will be promptly implemented through a revision to the SBA’s interim final rule providing the safe harbor.
In FAQ 46, released yesterday, the SBA released the promised guidance regarding the good faith certification of the necessity of a Paycheck Protection Program (PPP) loan and provided a safe harbor for PPP loans under $2 million. You can read more about that here.
Please contact us online or at [email protected] with any questions.