Earlier today, May 13th, the SBA added to its FAQs regarding the Paycheck Protection Program Loans. As you may have heard, there were rumblings that many businesses that received PPP loans should actually return them, citing the PPP loan application standard requiring that the loan request was being made in good faith, and that the business had no other access to capital.
The linked FAQs were added to, including question 46, “How will SBA review borrowers’ required good-faith certification concerning the necessity of their loan request?”
In the guidance, the SBA, along with the Trump administration, says that they will presume borrowers have met the certification requirements for forgivable small-business loans under $2 million. This safe harbor announcement was likely in response to many in the media and public becoming weary of the unclear rules surrounding forgiveness of these loans.
We expect that the SBA will issue more guidance in the coming weeks regarding the forgiveness of these loans, and we will continue to keep our clients updated.