5/13 Update - PPP loan qualification and forgiveness
Good Afternoon, Although this is a small parcel of news, its one that, at least partially, answers one the most commonly asked question we are getting these days. You might have missed the note from Jessica Cardenas today, but she sent out a bulletin on new guidance from the Department of Treasury on conditions for PPP Loan qualification and forgiveness.
Question: How will SBA review borrowers’ required good-faith certification concerning the necessity of their loan request? Answer: 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. If SBA determines in the course of its review that a borrower lacked an adequate basis for the required certification concerning the necessity of the loan request, SBA will seek repayment of the outstanding PPP loan balance and will inform the lender that the borrower is not eligible for loan forgiveness. If the borrower repays the loan after receiving notification from SBA, SBA will not pursue administrative enforcement or referrals to other agencies based on its determination with respect to the certification concerning necessity of the loan request. SBA’s determination concerning the certification regarding the necessity of the loan request will not affect SBA’s loan guarantee. There are still a number of issues not quite addressed in this, but it should be a significant relief for those of you who received a loan smaller than $2 million.