On May 5th, the SBA extended the “safe harbor” deadline for the repayment of any Payroll Protection Program (“PPP”) loans to May 14, 2020. Last week, the SBA announced its intention to review the certification that all recipients of the PPP loans made in their applications regarding the necessity of the PPP loan due to “unforeseen economic conditions” arising form the COVID-19 pandemic. At that time the SBA, indicated that anyone returning the PPP loan proceeds by May 7, 2020 would be considered to have made the certification in “good faith”.
In addition to extending the “good faith” safe harbor repayment date to May 14, 2020, the SBA indicated that it would be issuing additional guidance on its review of the certifications set forth in the PPP loan applications.
BMSA will continue to monitor any additional guidance issued by the SBA. In the meantime, should you have questions regarding the PPP loan program please contact on the of the BMSA attorneys in the Business Practice Group.