PPP Repayment Deadline Officially Extended by SBA

Last night, the Small Business Administration (SBA) added question #43 to the Paycheck Protection Program (PPP) FAQs:

43. 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?

In the response, the SBA officially extended the PPP loan repayment deadline from May 7 to May 14, 2020. The SBA also notes in this response that it intends to provide additional guidance before the new May 14 deadline on how it will review the economic uncertainty certification:

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.

This guidance will be welcomed by the business community as the certification has caused uncertainty and concern for many companies who were granted PPP loans.

Watch our webinar on this new development and other loan forgiveness FAQs by clicking here.

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