Beaird Harris will be closed on Friday, July 3rd in observance of the Independence Day holiday.
May 13, 2020
“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 SBA has recognized that borrowers with loans under the $2 million threshold are generally less likely to have had access to adequate sources of liquidity.
The SBA reiterated that it will continue to audit borrowers with loans greater than $2 million, though FAQ #46 recognizes that “borrowers with loans greater than $2 million…may still have an adequate basis for making the required good-faith certification, based on their individual circumstances…”
Any determination by the SBA that a borrower lacked an adequate basis for the required “need” certification will result in a repayment request and lender notification that the borrower is not eligible for forgiveness. No additional enforcement remedies will be pursued for borrowers who repay their loan following a repayment request.
This is welcomed guidance for the small business community who were anxiously awaiting clarification. As always, don’t hesitate to reach out to us with your questions. We are here to help!
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