Safe Harbor for PPP Loans Under $2Million
Today, the Treasury Department revised the FAQs for borrowers under the Paycheck Protection Program (PPP) by adding new FAQ #46. This new FAQ addresses how the Small Business Administration (SBA) will review a borrowers’ required good-faith certification concerning the necessity of their loan request. Under the new FAQ, a safe harbor has been adopted providing that 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. The full text of FAQ #46 is below, followed by a link to all of the PPP FAQs that have been issued to date.