MAY 6, 2020
In the May 5th update of the Paycheck Protection Program Frequently Asked Questions, the Trump Administration announced that it would be extending the deadline for borrowers to return Paycheck Protection Program loans by one week from May 7th to May 14th. The decision came after various groups urged the administration to provide more time for borrowers to decide if they would return their loans. The SBA has indicated that it intends to provide additional guidance on how it will review the certification prior to the May 14th deadline.
From Question #43:
Question: FAQ #31 reminded borrowers to review carefully the required certification on the Borrower Application Form that “current 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.
If you have questions, we are here to help. Please contact your Brown Edwards professional for more information or assistance.