PPP Loan Update – Safe Harbor Extended and Automatically Granted to Loans Under $2 Million
May 14, 2020
On May 13, 2020, the SBA updated its guidance explaining how the SBA will review borrowers’ required good-faith certification regarding the necessity of their loan request.
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 certification in good faith.
Borrowers who received a loan of $2 million or more will have until May 18, 2020 to repay their loan under the Safe Harbor Period and are given more leeway to repay the loan and avoid administrative penalties. For the more information on how borrowers with loans of $2 million or more are granted safe harbor, please see the SBA Frequently Asked Questions Guide, question #46 and #47.
If you have questions about an SBA PPP loan, please contact us online or at (412) 338-1100.