On May 5, 2020, the Small Business Administration (“SBA”) updated its Frequently Asked Questions (“FAQs”) regarding implementation of the Paycheck Protection Program (“PPP”), to specifically address a one-week extension of the repayment date for purposes of the safe harbor set forth in prior SBA guidance.

As we have discussed in previous alerts, in submitting a PPP application, borrowers must carefully review and certify in good faith that, among other things, “[c]urrent economic uncertainty makes [the] loan request necessary to support the ongoing operations of the Applicant.” Pursuant to the updated FAQs, borrowers who applied for a PPP loan prior to April 24, 2020 and who repay such loan in full by May 14, 2020 (extended from May 7, 2020), will be deemed by the SBA to have made the foregoing certification in good faith.

Per the FAQs, the SBA intends to issue additional guidance regarding the required certification by May 14, 2020.