SBA Paycheck Protection Program FAQs (as of 5-5-20)
For Buyers For SellersPosted by Ron Buck on
The SBA just updated their FAQs (5-5-20). Some new items addressed:
- Defined the 8-week period for forgiveness calculations as “The eight-week period begins on the date the lender makes the first disbursement of the PPP loan to the borrower”
- Extended the safe harbor deadline to May 14, 2020: “Borrowers now have until May 14, 2020 to decide whether to return Paycheck Protection Program (PPP) funds within a safe harbor period provided by the SBA”. This is primarily related to Q31: “31. Question: Do businesses owned by large companies with adequate sources of liquidity to support the business’s ongoing operations qualify for a PPP loan?”
- The FAQs are a mix of Q&A for borrowers and bankers. Definitely worth a read if you are a borrower and have questions about the funds and the forgiveness provisions (still more to come on this…).