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Today, May 14, 2020, was supposed to be the repayment deadline for Payroll Protection Program (PPP) loans for companies concerned about their eligibility for the loan program in light of recent comments made by government officials. The original repayment date was May 7, 2020, which was then extended to May 14, 2020, by the Small Business Administration (SBA). Just late yesterday, the SBA noted under FAQ #47 that the repayment deadline was now extended further to Monday, May 18, 2020.
This extension comes in the wake of a hotly debated topic over the past few weeks with many companies that received PPP funding considering whether to repay the PPP loan by the safe harbor date. Upon submission of PPP loan applications, all borrowers were required to certify in good faith that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the business.” While we still do not know how the SBA will determine “uncertainty” or whether the SBA will consider your loan as “necessary,” the Treasury Department’s FAQ #46 provided guidance for loans under and over $2 million. You can review this guidance in detail here: Alert: Treasury Issues Guidance on Good-Faith Certifications for PPP Loans.
If you need assistance determining whether you should return your PPP funds, documenting your PPP loan needs, or managing your PPP loan funds, our team is available to help. To learn more, visit the COVID-19 Business Services section of our website or contact us. Also, be sure to subscribe here to get our news and alerts as they are released as we are committed to keeping you updated on how to navigate financial challenges associated with the COVID-19 pandemic.
Bert Mills, CPA, is the Managing Partner at Moore Colson. In his role, Bert sets the vision and mission of the Firm and works closely with the Firm’s leadership to drive and implement strategies.
Andy Starnes, CPA, is a Partner and Tax Services Practice Leader Moore Colson. Andy’s specialties include corporate tax compliance and planning, business consulting and multi-generational planning with a focus on the construction, professional services and staffing industries.