PPP Loan Repayment Safe Harbor Deadline Extended to May 14, 2020

May 5, 2020 | COVID-19 Legal Update

Two days ago, we sent you an update on the recent PPP loan certification changes.  Today, the Small Business Administration (“SBA”) issued FAQ 43 which extends the PPP loan repayment safe harbor date to May 14, 2020.  The extension is automatic and you do not need to apply for it.  Importantly, the SBA also stated that it “intends to provide additional guidance on how it will review the certification prior to May 14, 2020” (emphasis added).  This extension and promise of additional guidance is welcome news with so much uncertainty related to the certification requirement.  Fingers crossed that the pending guidance answers more questions than it raises.

The COVID-19 pandemic and response is an evolving situation. All levels of government are engaged in the process of preparing new legislation, regulations and orders both to stem the spread of the virus and to provide relief to employers and employees.   We will continue to monitor the situation and provide updates as applicable, especially as such updates affect healthcare providers and their practices.

For more updates on this topic and other legal updates related to the COVID-19 pandemic, please visit our COVID-19 Legal Resource Page by clicking here.