SBA Extending Repayment Date for Safe Harbor to May 18, 2020

The U.S. Small Business Administration (SBA) issued a new interim final rule on 5/13/20 allowing lenders to increase existing Paycheck Protection Program (PPP) loans to partnerships and seasonal employers. The SBA also extended the safe harbor for returning PPP loans from May 14 to May 18.

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.

View the full SBA FAQ here. 

An Update Regarding SBA Loan Good-Faith Certification