PPP Update: Safe Harbor Repayment Date Extended to May 14
Please note, this blog is current to the date of its publication, Monday, May 11. For additional updates or assistance navigating these uncertain times, please contact us or visit our SST COVID-19 resource page.
The U.S. Treasury Department recently issued an updated FAQ regarding the Paycheck Protection Program (PPP). Most notably, the revised document extends the repayment date for safe harbor certification to May 14, 2020 (originally May 7), allowing PPP fund recipients more time to analyze the good faith certification which states that the organization needed PPP funds to continue operations.
Additional guidance on how the Small Business Administration (SBA) will review certifications is expected to be released before May 14. In the meantime, the revised question #43 is below, and the full SBA FAQ can be viewed here.
Question #43: FAQ #31 reminded borrowers to review carefully the required certification on the Borrower Application Form that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” SBA guidance and regulations provide that any borrower who applied for a PPP loan prior to April 24, 2020 and repays the loan in full by May 7, 2020 will be deemed by the SBA to have made the required certification in good faith. Is it possible for a borrow to obtain an extension of the May 7, 2020 repayment date?
Answer #43: SBA is extending the repayment date for this safe harbor to May 14, 2020. 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. SBA intends to provide additional guidance on how it will review the certification prior to May 14, 2020.
COVID-19 assistance programs like the PPP are comprehensive and can be complex to navigate, but SST is here to help. We’re closely monitoring any updates and encourage you to contact us with any questions or concerns.
