SBA Provides Safe Harbor For Certifying Need For PPP Loans
Highlights
New SBA guidance says PPP borrowers of under $2 million are granted safe harbor and deemed to have made required good-faith certification of necessity
Individual circumstances of borrowers of PPP loans of $2 million or more can form an adequate basis to make the required good-faith certification
PPP loans of $2 million or more are subject to review; borrowers who lacked an adequate basis for the good-faith certification will be able to repay the loan without forgiveness, but also without further enforcement action
The Small Business Administration (SBA) has issued additional guidance via its frequently asked questions that extends the safe harbor period to return Paycheck Protection Program (PPP) loan funds, provides an additional safe harbor for certain PPP loan recipients regarding their good faith certification of need and offers insight on the SBA’s criteria when reviewing the good-faith certification of need for a PPP loan.
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