p>This morning (5/13), the Small Business Administration
(SBA) issued additional guidance on the Paycheck Protection Program
(PPP) through the form of a new Frequently Asked Question (FAQ).
This guidance addresses how the SBA will review the "good
faith certification" required of applicants to the program
concerning the necessity of loans. This guidance is of particular
importance given the SBA's previously announced
"safe-harbor" date of May 14th by which loan
proceeds can be returned without penalty.
The SBA has announced through FAQ #46 that borrowers that
received loans in an amount less than $2,000,000 (including all
affiliates) will be deemed to have made the required certification
that "current economic uncertainty makes this loan request
necessary to support the ongoing operations of the applicant"
in good faith.
