Today, May 13, the Small Business Administration (SBA) published a new round of frequently asked questions and answers regarding the Paycheck Protection Program (PPP). The new answers provide important guidance on certain issues which had been unclear, including how the SBA will review borrowers’ required good-faith certification concerning the necessity of their loan request.
The SBA and Department of the Treasury have decided to implement a safe harbor with respect to the good-faith certification for any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million. In other words, businesses that borrowed less $2 million in PPP loans will be deemed to meet this requirement with no further review.
It is important to note that business’s borrowing more than $2 million under the PPP can still make the required good-faith certification. They will simply be subject to review by the SBA.
To see the full list of FAQs and answers, please see this PDF from the SBA.