After providing more clarity on the Paycheck Protection Program (PPP) certification requirement yesterday, the Small Business Administration (SBA) is giving PPP borrowers additional time to review and apply the new guidance to their situation.
The SBA has extended the safe harbor deadline, previously scheduled for today, May 14. PPP borrowers of $2 million or greater in original loan size now have until May 18, 2020 to return the loan funds if they cannot certify in good faith that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the applicant.”
The SBA has determined that borrowers who received less than $2 million in original loan size made the certification in good faith.
Borrowers who return the loan funds will be deemed to have made the good faith certification and will be eligible for other CARES Act incentives, such as the Employee Retention Credit.
If you have any questions about your eligibility for a PPP loan, please contact your Grassi Advisor or our Emergency Loan Consultants on Grassi’s Crisis Response & Recovery hotline at 212.223.6216 or response@grassiadvisors.com.
