Berntson Porter Coronavirus Resource Center Details

Newsletters

LIKE WHAT YOU READ? Share this article :

Extension of Safe Harbor Date From May 7th to May 14th – Returning PPP Funds Extended


Our BP blast sent out on Tuesday, May 4th discussed in-depth the question of certification of need. You can access that blast with this link.

Yesterday, the Treasury sent out FAQ #43 which extends the date from May 7th to May 14th and promises additional guidance regarding how the SBA will review the certifications.

The FAQ is listed below.

  1. 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.

To review the full set of FAQs for PPP loans, please see this link.

Berntson Porter is here to help you navigate these unprecedented times. Visit our online Resource Center for up-to-date information about COVID-19 legislation that impacts you and your business.