On May 5, 2020, the SBA issued a new FAQ in connection with the Paycheck Protection Program (“PPP”), which extends the “safe harbor” payment date available to borrowers until May 14, 2020. As previously discussed here, the PPP loan application requires borrowers to certify that “current economic uncertainty makes the loan request necessary to support the ongoing operations of the applicant.” Subsequent FAQs from the SBA seemingly imposes a higher certification standard than what was originally provided in the CARES Act. Borrowers who applied for a loan prior to the issuance of the new guidance and who repay their loan, will be deemed to have made the required good faith certification. The SBA notes it will also provide additional guidance on how it will review the certification prior to the May 14, 2020 repayment deadline.
If you have additional questions or want to discuss your application, please reach out to a member of our Corporate practice group for assistance.
Attorney Advertising. Prior results do not guarantee a similar outcome. This publication is provided as a service to clients and friends of Harter Secrest & Emery LLP. It is intended for general information purposes only and should not be considered as legal advice. The contents are neither an exhaustive discussion nor do they purport to cover all developments in the area. The reader should consult with legal counsel to determine how applicable laws relate to specific situations. ©2020 Harter Secrest & Emery LLP