On May 13, 2020, the Small Business Administration (SBA) added Question #47 to the PPP loan FAQs under the CARES Act Paycheck Protection Program (PPP). Question #47 specifies that the repayment date for safe harbor has been extended from May 14, 2020 to May 18, 2020.
Below is a reprint of Question #47 for your reference. You may download a PDF of the complete list of PPP FAQs on the SBA website.
A SBA interim final rule posted on May 8, 2020 provided that any borrower who applied for a PPP loan and repays the loan in full by May 14, 2020 will be deemed by SBA to have made the required certification concerning the necessity of the loan request in good faith. Is it possible for a borrower to obtain an extension of the May 14, 2020 repayment date?
Yes, SBA is extending the repayment date for this safe harbor to May 18, 2020, to give borrowers an opportunity to review and consider FAQ #46. 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.
Please don’t hesitate to contact your tonneson + co representative should you have any questions.