In a recent eblast, we reported on the safe harbor for PPP loan recipients receiving a loan under $2 million. We have received questions about this that we wanted to quickly address.

The safe harbor is only in reference to the good-faith certification made when you applied for the loan. That is, the SBA and Treasury will make a blanket assumption that you filed your loan request in good-faith and have need for the loan if the amount is under $2 million. This does not mean that your loan will automatically be forgiven given the safe harbor ruling. The same rules still apply in order to receive loan forgiveness: namely, that 75% of the forgiven amount must be spent on payroll costs while no more than 25% of the forgiven amount can be expended on approved rent, utilities, or mortgage interest.

Please see our recent write-up here for our original message on the safe harbor. If you have any further questions, don't hesitate to reach out!