ADDITIONAL DETAILS RELEASED REGARDING PPP REPAYMENT DEADLINE
This morning, the Treasury Department offered additional guidance, yet again, regarding their extended repayment deadline for businesses receiving Paycheck Protection Program loans. The guidelines now provide a safe harbor for businesses that received loans for less than $2M.
In FAQ#46, Treasury stated that loans for less than $2M will automatically be deemed to meet the certification requirements of economic uncertainty at the time of the loan application. These loans would not need to be returned by companies who received them and are still trying to determine if they need to repay the loan before the May 14 deadline that was previously given in the same Frequently Asked Questions guidance.
Businesses who have received loans greater than $2M will be subject to a review of the economic uncertainties they have certified to. If the SBA and the lending institution determine that no economic uncertainty existed at the time of the loan, the company will be asked to repay the loan immediately. The guidance furthered states that this immediate repayment would result in no further legal action from Treasury or SBA.
This guidance is almost too, little too late for some businesses, but may be helpful for those still trying to decide if they should repay these loans from the former guidance issued.
A few additional resources around the Paycheck Protection Program:
- May 8, 2020 |PPP Economic Uncertainty Clarification Update Gets Extended Repayment Deadline
- April 28, 2020 | Recorded Webinar | Paycheck Protection Program Loan Forgiveness Phase
- April 24, 2020 | Payroll Protection Program (PPP) Calculating Tool and Tutorial
- FAQ’s | Payroll Protection Program Application
- FAQs | Payroll Protection Program – Forgiveness Phase
- Payroll Protection Program Deep Dive Flowchart – Calculating Maximum Loan Amount
- And more at www.SquireCARES.com