FAQ’s just released by the SBA, it was stated they will Presume Good Faith for loans under $2 million.
SBA Defines Safe Harbor Rules
When submitting a PPP application, borrowers certified that the need for a PPP loan is necessary to support the borrower’s ongoing operations because of the impact of current economic conditions.
PPP Loans under $2 Million
- SBA will presume the borrower’s certification of the necessity of the loan was made in good faith
PPP Loans over $2M
- If the SBA determines the need was not met, the ramifications will be limited to denial of forgiveness and the repayment of the loan at the 1% interest rate
Latest SBA Links:
- FAQ’s have been updated (5/13/20) and can be accessed HERE.
- A new interim final rule (5/13/20) relating to loan increases can be accessed HERE.
- View all Interim Final Rules HERE.
- View the PPP second round approvals HERE.
As a service to our clients and network – reach out to Hardesty with your questions.If you need more help than that, contact Hardesty today and we can help you with Fractional CFO support to:
- Review your forgiveness plan
- Communicate with your bank
- Maximize your forgiveness amount
- Help the company emerge stronger