SBA Modifies the PPP Loan FAQs to Extend the Date for Certain Loan Repayments

On May 5, the Treasury Department and the Small Business Administration (SBA) updated their Paycheck Protection Program (PPP) FAQ document once again. The update adds FAQ #43 which modifies a previously issued FAQ (#31). FAQ #31 was originally issued to remind borrowers to carefully review the required certification made with their PPP loan application concerning the necessity of the PPP loan and provided guidance concerning the circumstances pursuant to which the PPP loan may not be available to a borrower. Under FAQ #31, SBA provided that any borrower who applied for a PPP loan prior to the issuance of the guidance in FAQ #31 (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. FAQ #43 extends automatically the deadline for the safe-harbor repayment date from May 7 until May 14, 2020. In addition, the FAQ states that SBA intends to provide additional guidance on how it will review the certification prior to May 14.

Here is the link to PPP loans FAQs as of May 5.