SBA Extends PPP Safe Harbor Period to May 14th
Filed under:Affordable Housing, Construction, COVID Updates, Dental, Family Business, FQHC, Healthcare, Nonprofit, Private Companies, Small Business Services
In order to receive a Paycheck Protection Program (PPP) loan, borrowers must generally certify that current economic uncertainty renders such a loan necessary to support ongoing operations.
Last week, the Small Business Administration (SBA) updated the PPP FAQs to indicate that private companies with “adequate sources of liquidity” should review and take into account their current business activity and ability to access other sources of liquidity before certifying their need for PPP loans.
It also noted that if a private company had received funds prior to the issuance of the guidance requiring review of liquidity, it could repay the loan in full by May 7, 2020 and be deemed to have complied with the relevant certification rules.
On May 5, 2020 the SBA updated its PPP FAQs again and extended this safe harbor period to May 14, 2020. In addition to this extension, the SBA intends to provide additional guidance on how it will review the certification prior to May 14th.