Dear Client,
Today the SBA updated its guidance for PPP borrowers regarding the repayment safe harbor. In item #46 of the frequently asked questions, they've stated the following:
“Any borrower that together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.”
In simpler terms, if you received a PPP loan for less than $2 million dollars you are automatically assumed to have needed the loan.
In light of this new development, anyone with a PPP loan of less than $2 million and considering repayment may want to reexamine whether repayment is necessary.
Feel free to contact us with any questions.
Sincerely,
Andaloro, Smith & Krueger, LLP
