COVID-19 Information and Resources

PPP Loan requests that resulted in loans of less than $2 million will be deemed to have been certified by the applicant in good faith

All recipients of PPP Loans of less than $2 million will be deemed to “have made the required certification concerning the necessity of the loan request in good faith.”

May 13, 2020

In a May 13 update of its PPP FAQ (see FAQ 46), the SBA said that all recipients of PPP Loans of less than $2 million will be deemed by the SBA to “have made the required certification concerning the necessity of the loan request in good faith.”

The relevant section of the FAQ is as follows:

46.
Question: How will SBA review borrowers’ required good-faith certification concerning the necessity of their loan request?

Answer: When submitting a PPP application, all borrowers must certify in good faith that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” SBA, in consultation with the Department of the Treasury, has determined that the following safe harbor will apply to SBA’s review of PPP loans with respect to this issue: Any borrower that, together with its affiliates, 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.

SBA has determined that this safe harbor is appropriate because borrowers with loans below this threshold are generally less likely to have had access to adequate sources of liquidity in the current economic environment than borrowers that obtained larger loans. This safe harbor will also promote economic certainty as PPP borrowers with more limited resources endeavor to retain and rehire employees. In addition, given the large volume of PPP loans, this approach will enable SBA to conserve its finite audit resources and focus its reviews on larger loans, where the compliance effort may yield higher returns.

Related Links

PKF O’Connor Davies COVID-19 Resource Center
Current information from an accounting firm.

Small Business Administration Paycheck Protection Program FAQ
The most current version of the SBA’s ever-lengthening PPP FAQ

Diocesan Paycheck Protection Program FAQ
A PPP FAQ prepared by the chancellor of the diocese, Alice Yurke, Esq.

PPP Loan Forgiveness Links

PPP Loan Forgiveness Application
The official application form for PPP loan forgiveness.

PPP Loan Forgiveness Application Overview (by PKF O’Connor Davies)
An overview of the PPP loan forgiveness application by an accounting firm.

PPP Loan Forgiveness Application In-Depth Analysis (by PKF O’Connor Davies)
An in-depth analysis of the PPP loan forgiveness application by an accounting firm.

PPP Loan Forgiveness Application Guide (by Withum)
A guide to the PPP loan forgiveness application by an accounting firm.

PPP Loan Forgiveness Application Guide (Forbes)
A guide to the PPP loan forgiveness application from Forbes.

Please note: These links are provided as a service to our congregations. Where they lead to the websites of professional firms or publications, they do not indicate or imply the diocese’s endorsement in any way of the content to which they lead, or of the individuals or organizations that prepared them.

Staff Contact

The Rev. Canon John D. Perris
Canon to the Ordinary
jperris@dioceseny.org

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