July 23, 2020
At the time we applied for a PPP loan in April, we had guaranteed funding only until May 10 and had no way of knowing whether it would be extended beyond that date. Since then, our funding has been extended twice with no gaps. Are we at risk of failing the economic uncertainty test?
Posted by Armanino Financial Advisory Team
If your loan was less than $2 million, you’re fine. If larger, you will need to be able to document the uncertainty you indicate you had. Given what you describe, it is reasonable to conclude that you had sufficient uncertainty, but the SBA is the arbiter of that and they have not provided any guidance as to what constitutes “necessity” for the loan or how much available liquidity was enough or not enough. We continue to hope for guidance on this important issue.