SBA Releases Good-Faith Certification Guidelines for PPP Loans
5/13/2020Articles & Podcasts
In their latest FAQ update (Question 46), the Small Business Administration (SBA) has released guidance concerning good-faith certification guidelines in relation to the necessity of Paycheck Protection Program (PPP) Loan requests. The SBA says any borrower (and its affiliates) that 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.
If you (including your affiliates) received less than $2 million in PPP Loan funds, you no longer have to be concerned with returning the funds by May 14th for the purposes of the certification made at the time of the loan application.
If you received more than $2 million in PPP Loan funds, you need to continue to evaluate your certification.
Keep in mind that the SBA has indicated it will audit all loans greater than $2 million.
DGC’s PPP Loan forgiveness team has developed a complex model to assist clients with the forgiveness calculation process. This model will play an important role in producing the documentation that lenders will require for approval of the loan forgiveness amount. The model will also be helpful in the event of a subsequent SBA audit.
If you want to discuss this or related matters, please contact a member of your DGC client service team or George Shaw, CPA at 781-937-5125 / firstname.lastname@example.org. You can also visit our coronavirus web page at dgccpa.com/coronavirus which is frequently updated with resources to help you deal with the impact of the coronavirus on you and your business.
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