PPP Repayment Deadline Extended Yet Again by SBA
Late yesterday, the Small Business Administration (SBA) extended the Paycheck Protection Program (PPP) loan repayment deadline from May 14 to May 18, 2020. This is the second extension granted by the administration. The original repayment deadline was May 7, 2020. Additional information can be found in the newly added question #47 of the PPP FAQs:
47. 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.
This extension comes on the heels of the SBA’s new guidance regarding the good-faith certification for PPP loans, which states that PPP loans with original principal amounts less than $2 million (in combination with any affiliate loans) will be deemed to have made the certification in good faith. Together, these new announcements provide borrowers a bit of relief and a few extra days to review and consider the status of their PPP loans.
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