The SBA last night published a new frequently asked question (FAQ) on the Paycheck Protection Program (PPP), extending the safe harbor period to repay a PPP loan by one week, to May 14, 2020. This follows on an earlier FAQ (FAQ #31), described in our last post, which had established the safe harbor deadline as May 7. The new FAQ is posted below:
Question: 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 SBA to have made the required certification in good faith. Is it possible for a borrower to obtain an extension of the May 7, 2020 repayment date?
Answer: 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.
In addition, it has come to our attention that the link to the full set of FAQs in our last post was broken. Here is a new link to the updated set of FAQs.