Earlier today, May 13, the SBA and Treasury updated the Paycheck Protection Program (PPP) Frequently Asked Questions (again!) to add question #46. This update provides a safe harbor with respect to the borrower’s good faith certification concerning the necessity of the PPP loan.
The answer states “Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.”
The updated FAQ also provides more information for borrowers with loans greater than $2 million.