If your business or nonprofit applied for a PPP loan prior to April 24, you were required to certify in your application that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” In a subsequently issued frequently asked questions document from the SBA, it was noted that borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business. Additionally, you were given a safe harbor repayment-in-full date of May 7, 2020 to be deemed by the SBA to have made that certification in good faith.
Yesterday (May 5, 2020) the SBA extended the safe harbor repayment-in-full date to May 14, 2020. Borrowers do not need to apply for this extension. The SBA intends to provide additional guidance on how it will review the certification prior to May 14, 2020.