Updated PPP News

Posted By: Andrew Heidtke COVID 19 Updates ,

Following up on yesterday’s update, Treasury and SBA have added an additional Q&A to the document that extends the safe harbor date from May 14th (today) to May 18th – see the updated Frequently Asked Questions, Question 46 regarding the safe harbor and required certification, and new Question 47 related to the extension below: 

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.