SBA Extends PPP Loan Safe Harbor Repayment Deadline to May 18
The U.S. Small Business Administration has updated its Paycheck Protection Program (PPP) Frequently Asked Questions (FAQs) to extend the “safe harbor” deadline to avoid liability for the attestations in the PPP loan application from May 14 to May 18. The relevant portion of the updated FAQs (question 47) is included below for your reference:
47. Question: An SBA interim final rule posted on May 8, 2020 provided that any borrower who applied for a PPP loan and repays the loan in full by May 14, 2020 will be deemed by SBA to have made the required certification concerning the necessity of the loan request in good faith. Is it possible for a borrower to obtain an extension of the May 14, 2020 repayment date?
Answer: Yes, SBA is extending the repayment date for this safe harbor to May 18, 2020, to give borrowers an opportunity to review and consider FAQ #46. 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.
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