On May 5, 2020, the Small Business Administration extended the time in which certain borrowers of Paycheck Protection Program loans may take advantage of the certification safe harbor SBA announced on April 24, 2020. The SBA also issued guidance on applying the affiliation rules to businesses with U.S. and foreign affiliates.
A borrower who applied for a PPP loan before April 24 now has until May 14, 2020, to repay the loan in full to be deemed to have made in good faith the required certification that current economic uncertainty made the loan request necessary to support ongoing operations. The SBA announced it will issue guidance before May 14 on how it will review borrower certifications.
For purposes of the employee-size standard for PPP loans, the SBA stated potential applicants must count all their employees and the employees of their U.S. and foreign affiliates.
These developments came in PPP Loan FAQs # 43 and 44.
If you have any questions, please contact our COVID-19 Task Force.
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