The Small Business Administration (SBA), in consultation with
the Department of Treasury, issued supplemental guidance on the
Paycheck Protection Program (PPP) in the form of additional
“frequently asked questions.” This guidance addresses
certifications required to be submitted in furtherance of a PPP
application. Although it does not directly conflict with the CARES
Act language eliminating the SBA's traditional funding of
last resort requirement, it provides significant insight into the
SBA's views on economic need and ongoing liquidity, and may
require some applicants to reevaluate certifications previously
submitted to their lending institutions in furtherance of a PPP
loan.
The most recent FAQ discusses a borrower's assessment of
economic need under PPP. Borrowers are required to certify –
in good faith – that a PPP loan is necessary given economic
circumstances. A required certification states that,
“[c]urrent economic uncertainty makes this loan
