Under the recently enacted federal Consolidated Appropriations
Act of 2021, cooperatives are now specifically eligible to obtain
Paycheck Protection Program (PPP) loans. For smaller borrowers, the
basic program requirements have not changed. In applying for the
loan, borrowers must still make a certification in good faith that
"current economic uncertainty makes this loan request
necessary to support the ongoing operations of the Applicant."
Where the borrower has suffered no loss as a result of COVID-19,
such a certification may be questionable. But sustaining actual
losses, such as a loss of commercial income, would presumably
support the good faith of such a certification.
Additionally, under the FAQs applicable to the original program,
it is presumed that the borrower's certification is made in
good faith for loans under $2 million. See Questions 31, 46 and 53
in the Small Business Administration's (SBA) FAQ publication. This so-called "safe
harbor" addresses what
