News & Analysis as of

Certification Requirements Good Faith

Morrison & Foerster LLP

U.S. SEC Adopts Amendments to Rule 10b5-1 and Requires Related Disclosures

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On December 14, 2022, the U.S. Securities and Exchange Commission (the SEC) adopted amendments to the affirmative defense in Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended (the Exchange Act), and adopted...more

Fox Rothschild LLP

CDA Claim Series Wrap Up: Best Practices for Government Contactors

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This is the eighth (and last) of an eight-part series addressing cutting-edge strategies for Certified Claims under the Contract Disputes Act (CDA). Certified Claims are the primary avenue available to government contractors...more

Parker Poe Adams & Bernstein LLP

SBA Reveals Questionnaires Aimed at Auditing Necessity of Large Paycheck Protection Program Loans

In a series of FAQs issued last spring, the Small Business Administration (SBA) made clear that it would review the certification made by Paycheck Protection Program (PPP) borrowers of $2 million or more that “[c]urrent...more

Holland & Knight LLP

SBA Paycheck Protection Program Loans: Forgiveness Guidance, Part II

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Employers rushed to apply for the first $349 billion in Paycheck Protection Program (PPP) loans made available under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which Congress has increased to $670...more

Woods Rogers

PPP Loan Forgiveness Application

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This Article is based on information available as of May 18, 2020.  The information is subject to change as additional guidance is provided. The SBA has now published its PPP Loan Forgiveness Application (SBA Form 3508) which...more

Woods Rogers

Additional guidance from the SBA on "available liquidity" element of certifications for PPP Loans – Safe Harbor extended to May...

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Since the passage of the CARES Act and the SBA completing the first round of PP Loans, companies have been dealing with an ever changing set of guidelines interpreting the eligibility requirements for a PPP Loan and the...more

Lathrop GPM

Paycheck Protection Program (PPP) update, with our own “Frequently Asked Questions”

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Anyone closely considering or utilizing the PPP has undoubtedly heard about the U.S. Small Business Administration’s (SBA’s) so-called “Frequently Asked Questions” (FAQs) that the agency has been issuing and updating on a...more

Spilman Thomas & Battle, PLLC

COVID-19 Update: New Critical Guidance on PPP Loan Forgiveness

On May 13, 2020, the Small Business Administration ("SBA") issued FAQ # 46 dealing with its plan to review certain PPP loans (in response to COVID-19) to determine if the “necessity” certification was made in good faith by...more

Pullman & Comley, LLC

Paycheck Protection Program Frequently Asked Question 46: “How Will SBA Review Borrowers’ Required Good-Faith Certification...

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On May 13, 2020, the United States Small Business Administration (SBA), in consultation with the United States Treasury, released FAQ 46 to provide guidance as to how SBA will be reviewing the certifications that all...more

Franczek P.C.

SBA Adopts “Safe Harbor” Provision for PPP Loan Recipients Under $2 Million.

Franczek P.C. on

In response to public criticism regarding the disbursement of loans to larger companies, on April 23, the Small Business Administration (SBA) issued guidance stressing that Paycheck Protection Program (PPP) loan applicants...more

Lowndes

SBA Extends Safe Harbor Deadline to May 18 & Issues New Guidance on Loan Increases

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As discussed here, yesterday in FAQ #46, the SBA stated that “[a]ny borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the...more

McNees Wallace & Nurick LLC

JUST RELEASED: New Guidance on SBA Certification and Safe Harbor

The vast majority of Borrower’s under the SBA’s Paycheck Protection Program (the “PPP”) may breathe a little bit easier today, as the SBA has finally issued guidance surrounding the “good faith” certification Borrowers had to...more

Neal, Gerber & Eisenberg LLP

Updated PPP Loan FAQ from the U.S. Treasury Department with Guidance on Its Review of the Certification Regarding the Necessity of...

The U.S. Department of the Treasury recently updated their "Paycheck Protection Program Loans FAQ" with guidance regarding its review of a borrowers’ required good-faith certification concerning the necessity of their loan...more

Holland & Knight LLP

SBA Provides Safe Harbor for PPP Borrowers Receiving Less than $2 Million

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The U.S. Small Business Administration (SBA) has released guidance just one day before its safe harbor repayment deadline of May 14, 2020, to help a Paycheck Protection Program (PPP) borrower determine whether it lacked a...more

Woods Rogers

Certifications made on application for a PPP Loan – Safe Harbor deadline extended to May 14, 2020

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Since the passage of the CARES Act and the SBA completing the first round of PPP Loans, companies have been dealing with an ever changing set of guidelines interpreting the eligibility requirements for a PPP Loan and the...more

Porter Hedges LLP

Alert: "SBA Extends Safe Harbor Repayment Date For PPP Loans To May 18"

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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”...more

Hinshaw & Culbertson LLP

SBA Provides Additional Guidance on Review of Economic Uncertainty Certifications Made by PPP Loan Applicants

In the past few weeks, the U.S. Department of Treasury and Small Business Administration (SBA) have raised issues concerning the economic uncertainty certification made by both public and private companies in FAQs #31 and...more

McCarter & English, LLP

SBA Issues Guidance On Good Faith Necessity Certification Safe Harbor, Limits PPP Funds To $20 Million For Corporate Groups

The SBA has provided a good faith necessity certification safe harbor for certain PPP borrowers with loans less than $2 million and also has limited PPP funds to $20 million for corporate groups...more

Porter Hedges LLP

Alert: "SBA Issues Additional Guidance On Good Faith 'Necessity' Certification Of PPP Loans"

Porter Hedges LLP on

On May 13, 2020, the Small Business Administration (SBA) announced additional guidance regarding the good faith “necessity” certification for Paycheck Protection Program (PPP) loans in the form of a new Frequently Ask...more

Burr & Forman

SBA Releases Guidance on PPP Good Faith Need Certification

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On May 13, 2020, the Small Business Administration (“SBA”) updated its Frequently Asked Questions on the Paycheck Protection Program (“PPP”) loans with a new Question 46 regarding a borrower’s certification that its PPP loan...more

Downs Rachlin Martin PLLC

Paycheck Protection Program Pressure Mounts – Is Change Inevitable?

The first PPP loans now near the end of their eligible 8 week period: significant questions persist and pressure is mounting on the SBA and Treasury to implement program revisions. ...more

Fisher Phillips

Businesses That Obtained PPP Loans Under $2M Will Not Be Audited (UPDATED)

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One long week after the U.S. Treasury announced that it was extending the Paycheck Protection Program Loan “safe harbor” deadline to May 14, the U.S. Treasury announced this morning that borrowers whose loan amount (combined...more

Bowditch & Dewey

New Guidance on the PPP Necessity Certification Provides Automatic Safe Harbor for Borrowers with Loan Amounts Under $2 Million

Bowditch & Dewey on

Safe Harbor Deadline to Repay Loans of $2 Million or More Extended to May 18th - On May 13, 2020, the Treasury issued important and long-awaited FAQ guidance regarding the PPP applicant certification (referred to herein...more

Jackson Walker

SBA Offers Safe Harbor on PPP Good Faith Certifications of Necessity

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When submitting a Paycheck Protection Program (PPP) loan request, medical providers and all other borrowers must certify in good faith that “[c]urrent economic uncertainty makes this loan request necessary to support the...more

Downs Rachlin Martin PLLC

New SBA Guidance for Good Faith Certifications - Enforcement and Safe Harbors

CARES Act: Paycheck Protection Program Loans - In guidance issued in late April, after many Paycheck Protection Program (“PPP”) loans had already been funded and the proceeds were being spent, the SBA said borrowers needed...more

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