SBA Defines PPP Loan Safe Harbor Rules

HARDESTY TIP

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.

 

HARDESTY SUPPORT

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
Stay Healthy!