‹‹ RETURN TO NEWS

FAQ 43 – The CARES Act Paycheck Protection Program

By Jason Shultz, CPA, HoganTaylor Assurance Partner

On May 5, 2020 the Treasury Department announced the SBA will be providing additional guidance on how they will review borrower certifications prior to May 14th.  As part of this announcement, FAQ #43 also extended the safe harbor repayment date related to FAQ #31.  The full text of FAQ #43 is below (emphasis added):

43. Question: FAQ #31 reminded borrowers to review carefully the required certification the Borrower Application form that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” SBA guidance and regulations provide that any borrower who applied for a PPP loan prior to April 24, 2020 and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith. Is it possible for a borrower to obtain an extension of the May 7, 2020 repayment date?

Answer: SBA is extending the repayment date for the safe harbor to May 14, 2020.  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.  SBA intends to provide additional guidance on how it will review the certification prior to May 14, 2020. 

 

Link to the full FAQ https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf