On May 5, the Small Business Administration (SBA) published FAQ 43, which extends the safe harbor date for Paycheck Protection Program (PPP) loan recipients to return funds to May 14, 2020.
Previously, on April 23, the SBA published FAQ 31 clarifying that “need” is a key qualification for use and receipt of the PPP forgivable loan funds. The SBA provided a grace period until May 7 for companies that have taken out these loans to return the funds if they no longer believe they can make the good-faith certification that they meet the qualifications for a PPP loan. See our previous alert. Borrowers now have an additional week.
FAQ 41 also states that the “SBA intends to provide additional guidance on how it will review the [good faith] certification prior to May 14.”
The foregoing has been prepared for the general information of clients and friends of the firm. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel. If you have any questions or require any further information regarding these or other related matters, please contact your regular Nixon Peabody LLP representative. This material may be considered advertising under certain rules of professional conduct.
Coronavirus Stimulus & Relief Alert | 06.04.20
Coronavirus Stimulus & Relief Alert | 05.14.20
Coronavirus Stimulus & Relief Alert | 05.13.20
Commercial Litigation Alert | 05.06.20
Coronavirus Stimulus and Relief Alert | 04.24.20
Coronavirus Stimulus and Relief Alert | 04.22.20
Franchise Law Alert | 04.07.20
Coronavirus Stimulus and Relief Alert | 04.06.20
06.09.20 | Webinar
06.08.20 | Webinar
06.05.20 | Webinar
05.26.20 | Webinar
05.14.20 | Webinar