May 6, 2020
SBA Extends PPP Safe Harbor Deadline Extended to May 14th
Posted by COVID-19 Rapid Response Team
Late yesterday, the SBA announced that they were automatically extending the deadline for borrowers to voluntarily repay PPP loans under the recently announced “safe harbor” provision. The deadline has been moved from May 7 to May 14.
This provision was put in place due to the concerns about borrowers receiving loan funds without having the requisite needs or when they had access to other liquidity, in potential violation of their required certification that the loan was “necessary to support the ongoing operations of the Applicant.” Any borrower who applied for a PPP loan prior to April 24 was given the safe harbor for repayment in full to be deemed as having made the certification in good faith.
The extension of the safe harbor to May 14 does not change any aspect of the provision or its applicability to borrowers. We continue to recommend that all borrowers carefully consider the ramifications of the certification, their ability to document “need” should their loan be challenged by the SBA, and the conservative expenditure of PPP loan funds in accordance with the authorized use of funds as outlined in the CARES Act.
For the latest regulatory changes and other information on keeping your organization running through disruption, visit our COVID-19 Resource Center.
These are unprecedented times. And we know you, your families and your organizations need support, now more than ever. Our top priority as your trusted advisor is to ensure we’re helping you through these tough times. Visit COVID-19 Rapid Response Resource Center for our crisis management resources and contact information for our COVID-19 Rapid Response Team Leaders.