By: Christopher Candon
May 14, 2020
The PPP safe harbor deadline has been the subject of posts in recent days:
- Treasury Department and SBA Issues Further Guidance in Advance of Safe Harbor Deadline
- PPP Safe Harbor for Return of Funds Set to Expire on May 14
With additional guidance from the SBA and Treasury Department issued on May 13 (FAQ #46), the SBA issued FAQ #47 extending the safe harbor deadline until May 18 to allow borrowers to review and consider the guidance set forth in FAQ #46.
The full FAQ #47 is reproduced below.
PAYCHECK PROTECTION PROGRAM LOANS
Frequently Asked Questions (FAQs)
47. Question: An 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? For purposes of this safe harbor, a borrower must include its affiliates to the extent required under the interim final rule on affiliates, 85 FR 20817 (April 15, 2020). As of May 13, 2020
Answer: 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.