UPDATE: SBA Further Extends PPP Repayment Safe Harbor Date from May 14, 2020 to May 18, 2020

The US Department of Treasury/Small Business Administration (SBA) has extended a key safe harbor date for Paycheck Protection Program (PPP) loans from May 14, 2020 to May 18, 2020. The SBA has issued a new FAQ which gives borrowers a few extra days to review and consider the new guidance it issued yesterday in the form of FAQ 46 relating to how it will review and audit a PPP’s certification that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” A summary of yesterday’s guidance can be found here. Borrowers now have until May 18, 2020 to repay in full a PPP loan and take advantage of the safe harbor in the SBA’s prior guidance contained in FAQs 31, 37 and 43, which together provide that a borrower who returns its loan proceeds in full by that date will be deemed to have made the certification in good faith.

If you would like further information or to discuss this guidance, please contact Greg Gorospe or Chris Magill of Ice Miller’s COVID-19 Task Force.

Please contact our COVID-19 Task Force if you have any questions about managing the risks of the coronavirus pandemic. Our Task Force leadership consists of partners Josh Christie, Tami Earnhart and Christina Fugate. Also see our Coronavirus (COVID-19) Resource Center for additional resources, which is updated daily.

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. It speaks only to guidance available as of May 13, 2020. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader’s specific circumstances.