May 13 Update:
Treasury guidance for loans less than $2 million
The Treasury released new guidance regarding the review of PPP borrowers’ required good-faith certification. According to this new information, “any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.”
This provides a safe harbor for borrowers with PPP loans less than $2 million since their good-faith certification will not be reviewed.
The SBA also extended the deadline to the safe harbor for businesses that have access to other sources of capital to repay their PPP loans. Borrowers that repay the loan in full by Monday, May 18, 2020, will be deemed by the SBA to have made the required certification of economic need in good faith.
Click here to read Treasury’s answers in their entirety (see question 46 and 46) along with other frequently asked questions about PPP loans.