On May 13, 2020, the U.S. Small Business Administration (SBA) provided an update to the PPP Frequently Asked Questions with the inclusion of Question 47.
On May 13, 2020, the U.S. Small Business Administration (SBA) provided an update to the PPP Frequently Asked Questions with the inclusion of Question 47.
On May 13, 2020, the U.S. Small Business Administration (SBA) provided an update to the PPP Frequently Asked Questions with the inclusion of Question 47:
Question: An SBA interim final rule posted on May 8, 2020 provided that any borrower who applied for a PPP loan and repays the loan in full by May 14, 2020 will be deemed by SBA to have made the required certification concerning the necessity of the loan request in good faith. Is it possible for a borrower to obtain an extension of the May 14, 2020 repayment date?
Answer: Yes, SBA is extending the repayment date for this safe harbor to May 18, 2020, to give borrowers an opportunity to review and consider FAQ #46. Borrowers do not need to apply for this extension. This extension will be promptly implemented through a revision to the SBA’s interim final rule providing the safe harbor.
On May 13, 2020, the U.S. Small Business Administration issued Interim Final Rule on Loan Increases. This guidance covers the following areas:
Items of Note:
Partnerships and LLCs that submitted an application that excluded partner or member compensation should contact their lender as soon as possible to request this increase. For guidance on How to Calculate Loan Amounts see Question 4 from the SBA’s published guidance. Partnerships and LLCs should be prepared to provide their 2019 IRS Form 1065 (including K-1s).
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