SBA and Treasury Issue Updated FAQ’s for PPP Lenders and Borrowers, Including Safe Harbor for Loans Issued for Less than $2 Million

The Small Business Administration, in consultation with the Department of the Treasury, issued responses to frequently asked questions about the Paycheck Protection Program on May 13, 2020.  The document walks through 47 frequently observed questions about the program in order to provide clarity for lenders and borrowers in the Paycheck Protection Program.  As part of this issuance, the SBA and Treasury issued two important safe harbor announcements:  1) any borrower who, together with its affiliates, received a PPP loan of $2 million or less will be deemed to have made the certification associated with the loan in good faith; and 2) the safe harbor for return of money received under the PPP program has been extended to May 18, 2020, during which time the SBA expects borrowers to consider returning money in light of the $2 million safe harbor.

The FAQs are available here.