PPP Safe Harbor Extended to May 18
AAFCPAs would like to make clients aware that in their most recent Paycheck Protection Program (PPP) Loan Frequently Asked Questions (FAQs), the Treasury and the Small Business Administration (SBA) announced an additional extension of the “safe harbor” deadline for recipients of PPP loans. PPP loan borrowers are now allowed to return the money to the government by May 18th, 2020 if the company determines they do not meet guidelines for certifying the necessity of the loan. This date was extended from May 14th by the SBA in an FAQs document released on May 13th, 2020.
As a reminder, in the May 13th FAQs #46, the SBA released guidance regarding how the organization will review borrowers’ required good-fair certification concerning the necessity of their loan request. For loans under $2 million, the SBA will assume there is economic need. For loans over $2 million, if the borrower repays the loan after receiving notification from the SBA that the borrow lacked adequate basis for the certification, the SBA will not pursue administrative enforcement or referrals to other agencies based on its determination so long as the PPP loan balance is repaid. Read more.>>
- SBA FAQ Indicates Good Faith Assumed for PPP Loans Under $2M
- Questions Businesses Need to Address to Support PPP Loan Certifications
- Paycheck Protection Program Loans: Tracking Costs and Measuring Forgiveness
- IRS Issues Guidance on Deductibility of Expenses Covered by PPP Loan
- Businesses May Defer Social Security Tax Up Until PPP Loan is Forgiven
- AAFCPAs is monitoring the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, the fate of which is unknown.
If you have any questions, please contact Brittany Besler, MBA, CPA, Esq. at 774.512.9001, firstname.lastname@example.org; Dan Stanhope, CPA, at 774.512.4134, email@example.com; or your AAFCPAs Partner.