PPP Deadline Extended to May 18
May 14, 2020
On May 13, the Paycheck Protection Program’s FAQs were amended once again, adding FAQ # 47 to extend the date by which borrowers who are unsure as to their eligibility – and who want to avoid an audit upon application for forgiveness of their loan – may return the loan proceeds, no questions asked.
Question: An SBA interim final rule posted on May 8, 2020 provided that any borrower who applied for a PPP loan and repays the loan in full by May 14, 2020 will be deemed by SBA to have made the required certification concerning the necessity of the loan request in good faith. Is it possible for a borrower to obtain an extension of the May 14, 2020 repayment date?
Answer: Yes, SBA is extending the repayment date for this safe harbor to May 18, 2020, to give borrowers an opportunity to review and consider FAQ #46. 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.