SBA Issues Additional Guidance on Paycheck Protection Program at Safe Harbor Deadline

Important update to Paycheck Protection Program loan guidance: Shortly before the safe harbor under the SBA Paycheck Protection Program is scheduled to expire on May 14, 2020, the Small Business Administration today has issued additional guidance for lenders and borrowers, including the announcement that the “SBA, in consultation with the Department of the Treasury, has determined that the following safe harbor will apply to SBA’s review of PPP loans with respect to [a borrower’s good faith certification of eligibility]: Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.” The full additional guidance can be found here.