The U.S. Small Business Administration (“SBA”), in consultation with the U.S. Department of the Treasury, has extended the safe harbor repayment date to May 18, 2020.
On May 13, 2020, the SBA added FAQ # 47 to frequently asked questions by lenders and borrowers regarding the PPP (the “SBA PPP FAQs”), which provides as follows:
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?
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.
A current copy of the SBA PPP FAQs can be obtained by clicking here.