FAQ 43 - The CARES Act Paycheck Protection Program

May 6, 2020 Jason Shultz, CPA, HoganTaylor Assurance Partner

Check On May 5, 2020 the Treasury Department announced the SBA will be providing additional guidance on how they will review borrower certifications prior to May 14th.  As part of this announcement, FAQ #43 also extended the safe harbor repayment date related to FAQ #31.  The full text of FAQ #43 is below (emphasis added):

43. Question: FAQ #31 reminded borrowers to review carefully the required certification the Borrower Application form that "[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant." SBA guidance and regulations provide that any borrower who applied for a PPP loan prior to April 24, 2020 and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith. Is it possible for a borrower to obtain an extension of the May 7, 2020 repayment date?

Answer: SBA is extending the repayment date for the safe harbor 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. 

Link to the full FAQ: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf

Certification and Your Loan

If you need assistance in evaluating your company’s PPP loan certifications or in drafting documentation to support the evaluation and conclusions surrounding your certifications, please contact a HoganTaylor advisor directly or via email at SBALoans@hogantaylor.com.

INFORMATIONAL PURPOSE ONLY. This content is for informational purposes only. The above analysis is subject to change. This content does not constitute professional or legal advice and should not be relied upon by you or any third party, including to operate or promote your business, secure financing or capital in any form, obtain any regulatory or governmental approvals, or otherwise be used in connection with procuring services or other benefits from any entity. Before making any decision or taking any action, you should consult with professional advisors.

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