TSCPA News

SBA Provides Safe Harbor for PPP Loans Under $2 Million

May 13, 2020

The U.S. Small Business Administration (SBA) recently posted guidance regarding the required certification concerning the necessity of Paycheck Protection Program (PPP) loan requests.

The guidance, posted as an answer to Question 46 in the Treasury’s PPP Q&As, states borrowers, together with their affiliates, that accepted PPP funds of less than $2 million will be assumed to have performed the required certification concerning the necessity of their loan requests in good faith.

Borrowers with loans of more than $2 million may still have an adequate basis for making the required good-faith certification based on their individual circumstances and the language of the certification and SBA guidance.

As previously announced, the SBA will review all PPP loans in excess of $2 million to make sure borrowers’ self-certification for the loans was appropriate.