In our Monday blog post, we mentioned the Treasury guidance on the Paycheck Protection Program (PPP) loans regarding borrower eligibility and that any borrower that applied for a PPP loan prior to the issuance of such guidance may repay the loan in full by May 7, 2020 and be deemed by the SBA to have made the required certification in good faith.
That date has been extended for this safe harbor provision to May 14, 2020. Borrowers do not need to apply for this extension. This extension will be promptly implemented through a revision to the SBA’s interim final rule providing the safe harbor. SBA intends to provide additional guidance on how it will review the certification prior to May 14, 2020.