Yesterday (5/13/20), the SBA released a new interim rule regarding Paycheck Protection Program (PPP) Loans and good-faith certifications. Below is an excerpt straight from the guidance:

“When submitting a PPP application, all borrowers must certify in good faith that ‘[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.’ SBA, in consultation with the Department of the Treasury, has determined that the following safe harbor will apply to SBA’s review of PPP loans with respect to this issue: 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 .”[emphasis added]

This is good news and removes a great deal of uncertainty for many small businesses like yours. If your loan is greater than $2 million or you are still feeling unsure about your loan, please do not hesitate to reach out to your CPA. We will be happy to talk through your individual situation with you.

--The Team at Rader & Rader