The Small Business Administration continues processing applications made under the Paycheck Protection Program after Congress approved an additional $310 billion in funding in mid-April; the program provides potentially forgivable loans to small businesses affected by the COVID-19 pandemic.
Loans made through the PPP are made on a first-come, first-served basis, so any roofing industry employers interested in applying are urged to do so as quickly as possible because it is unclear when current funding may become fully subscribed.
The Department of the Treasury and SBA released additional guidance May 5 regarding the PPP. The updated guidance includes an FAQ document that now contains Question 43, which updates Question 31 regarding the borrower’s certification that the loan is “necessary” with respect to other sources of liquidity to support the ongoing operations of the business. Question 43 extends to May 14 the “safe harbor” deadline for companies who no longer believe the PPP loan was necessary to return the loan funds in good faith.
Following is Question 43 and the answer as contained in the FAQ document:
“43. Question: FAQ #31 reminded borrowers to review carefully the required certification on the Borrower Application Form that ‘[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.’ SBA guidance and regulations provide that any borrower who applied for a PPP loan prior to April 24, 2020 and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith. Is it possible for a borrower to obtain an extension of the May 7, 2020 repayment date?
Answer: SBA is extending the repayment date for this safe harbor to May 14, 2020. 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. SBA intends to provide additional guidance on how it will review the certification prior to May 14, 2020.”
Employers who already have received a PPP loan, as well as prospective applicants, are urged to regularly review all related SBA documents as further guidance is provided by the agency. View the full FAQ document. Further guidance from SBA still is anticipated regarding the potential forgiveness of PPP loans.
