Paycheck Protection Program – Extension of Certification Safe Harbor Through…
Paycheck Protection Program – Extension of Certification Safe Harbor Through May 18, 2020
May 15, 2020
Brian A. Haskel, Alan E. Sherman, Jason L. Sobel, Lori M. Waldron
Please note that this alert updates prior publications made by our firm pertaining to the subject matter discussed below.
The CARES Act requires borrowers under the Paycheck Protection Program (PPP) to make a good faith certification “that the uncertainty of current economic conditions makes necessary the loan request to support the ongoing operations” of the borrower.
As we noted in a prior alert, on April 23, 2020, the Small Business Administration (SBA) published guidance in the form of FAQs regarding the above certification. In those FAQs, the SBA announced that, “[a]ny borrower that applied for a PPP loan prior to the issuance of this guidance and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith.”
On May 5, 2020, the SBA published updated FAQs, in which it extended the date by which such borrowers may repay the loan to May 14, 2020.
UPDATE: On May 13, 2020, the SBA published updated FAQs in which it extended the deadline to May 18, 2020.
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