On May 5, 2020, the Small Business Administration (SBA) issued additional guidance regarding the Paycheck Protection Program (PPP) loans by publishing FAQ 43, which extends the repayment date under the safe harbor provision to May 14, 2020. Previously, borrowers were required to return funds by May 7, 2020, and they do not need to apply for this one-week extension.
The SBA will publish additional guidance on how it will review certification before May 14, 2020. If you are considering returning funds, we recommend waiting until the additional guidance is issued. We will continue to watch for additional guidance from the SBA and will publish updates as soon as further guidance is released.
As background, on April 23, 2020, the SBA published FAQ 31, which clarified that ‘need’ is a crucial qualification for the use and receipt of PPP forgivable loan funds. The SBA provided an extension until May 7, 2020, for companies that took 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.
Tarlow is here to help!
Our Partners and staff members are here to provide coronavirus loan support and capital assistance and guide you through the Paycheck Protection Program (PPP) loan forgiveness process. To get started:
– For assistance with SBA loans, click here and complete and submit this form; and
– If you’ve already secured funding, for assistance with loan forgiveness planning, click here.
We are closely monitoring tax-related legislation and regulations and will continue to update you by sending communications about relevant news and changing guidelines. If you have any questions, please contact your Tarlow advisor.