SBA Announces New Deadline of May 14th to Repay Paycheck Protection Program Loans For “Good Faith” Certification
By Israel Tannenbaum
May 11, 2020
The U.S. Treasury Department updated a list of “frequently asked questions” (FAQs) concerning the Paycheck Protection Program (PPP) that is administered by the Small Business Administration (SBA).
The FAQs were updated to include FAQ #43 which states that the SBA is extending the repayment date for PPP loans to May 14, 2020, for “good faith” safe harbor certification.
Borrowers must certify in good faith that their PPP loan request is necessary to support their ongoing operations and must take into account their current business activity and their ability to access other sources of liquidity.
Borrowers do not need to apply for the extension. According to the FAQ, it will be implemented through a revision to the SBA’s interim final rule providing the safe harbor. The SBA intends to provide additional guidance on how it will review the certification prior to May 14, 2020.
Please contact your Mazars USA LLP professional for additional information.