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May 7th Safe Harbor Extended to May 14th

May 7th Safe Harbor Extended to May 14th

May 6, 2020
By Tonneson
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On May 5, 2020, the Small Business Administration (SBA) added Question #43 to the PPP loan FAQs under the CARES Act Paycheck Protection Program (PPP). Question # 43 specifies that the repayment date for safe harbor has been extended from May 7, 2020 to May 14, 2020.

Below is a reprint of Question #43 for your reference. You may download a PDF of the complete list of PPP FAQs on the SBA website.

#43. Question:

FAQ #31 reminded borrowers to review carefully the required certification on the Borrower Application Form that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” SBA guidance and regulations provide that any borrower who applied for a PPP loan prior to April 24, 2020 and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith. Is it possible for a borrower to obtain an extension of the May 7, 2020 repayment date?

Answer:

SBA is extending the repayment date for this safe harbor to May 14, 2020. 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. SBA intends to provide additional guidance on how it will review the certification prior to May 14, 2020.

Please don’t hesitate to contact your tonneson + co representative should you have any questions.