New SBA Guidelines

With the May 14, 2020 Safe Harbor date rapidly approaching, as expected, the SBA just released new guidance in the form of FAQ #46 regarding PPP loans in an amount less than $2 million.

Based on the information contained in this document, it seems that PPP loans under $2 million will not be subject to increased scrutiny by the SBA and that borrower’s certifications regarding need for the loan will be deemed to have been made in good faith.

With this in mind, we would recommend that all clients with PPP loans under the $2 million threshold wait to repay or return the PPP funds. We will review this newest guidance in conjunction with previously issued FAQs and provide more detailed recommendations shortly.

Kristin Whalen, Managing Partner | Attorney (NC)
Post: May 13, 2020