Business Owners – this is for you!
Following the recent announcement that the Small Business Administration would review any Paycheck Protection Program (PPP) loans made in amounts exceeding $2 million, the agency issued guidance extending an automatic safe harbor to borrowers receiving PPP loans with an original principal amount of less than $2 million.
These borrowers “will be deemed to have made the required certification concerning the necessity of the loan request in good faith,” SBA said in updates to its PPP FAQ. This means that the SBA won’t spend time or resources to audit the certifications of those who borrowed less than $2 million under PPP.
Borrowers that received PPP loans for amounts more than $2 million will be subject to review by the SBA for compliance with program requirements, including the certification of economic need.
The Mettise Group will continue to post updates to bring you the most current information. Our COVID-19 resource page can be found here.