As an update to our previous alert regarding guidance on the good faith “necessity” certification, the Small Business Administration (SBA) has further extended the Paycheck Protection Program (PPP) loan “safe harbor” repayment deadline from May 14, 2020 to Monday, May 18, 2020 with the addition of FAQ #47.
The full text of the new FAQ 47 is as follows:
“47. 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.”