Post by – Joe Allen –
SBA Payroll Protection Program
The NASBP website has posted important updates regarding the SBA Payroll Protection Program.
“The new FAQ states that borrowers that receive PPP loans in the amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith. The new SBA guidance extends an automatic safe harbor to borrowers receiving less than $2 million in PPP funds.
Borrowers that received PPP loans for over $2 million will be subject to review by the SBA for compliance with all of the PPP requirements, including the certification of economic need. The certification of economic need is based on a borrower’s individual circumstances “in light of the language of the certification and SBA guidance.”
If during the course of its review the SBA determines that a borrower failed to meet the good faith certification (determining that the PPP loan was not a necessity), the SBA will notify the lender that the borrower is not eligible for loan forgiveness and the borrower will be required to repay the outstanding PPP loan.”
