SBA Issues Additional Guidance on PPP “Necessity” Certification and Safe Harbor Deadline Extended to May 18, 2020

The safe harbor deadline for return of PPP loans HAS BEEN EXTENDED TO MAY 18, 2020. Borrowers with PPP loan amounts of less than $2 million (tallied across all affiliates) will be deemed to have made the “necessity” certification in good faith.

For borrowers with PPP loans greater than $2 million, if the SBA deems their “necessity” certification not to have been made in good faith, those borrowers may repay the loan, and if they do, the SBA will not pursue penalties or refer the matter to other agencies.

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