Paycheck Protection Program Updates
After the first $350 Billion of funding for the Paycheck Protection Program (PPP) was exhausted, last week, Congress and the President approved the appropriation of another $310 Billion towards the PPP. The Small Business Administration (SBA) then issued new guidance through an updated set of Frequently Asked Questions (FAQs) prepared in response to the questions, concerns and requests for clarifications raised during the administration of the first $350 Billion through the PPP.
The SBA announced that they will resume accepting applications from lenders today.
When putting in an application, applicants should carefully consider the certifications required, particularly in light of the SBA’s updated FAQs and the publicly-fueled criticism aimed at certain borrowers who received funding.
For those who have already applied prior to the issuance of the updated FAQs but have yet to receive funding, certifications should be reviewed again and if necessary, applicants should speak with their bankers to make changes to the application or if an applicant determines that they are no longer eligible, as that their application be withdrawn.
Additionally, as set forth in the FAQs, borrowers who have already received funding and made good faith certifications based on the SBA’s prior guidance but now believe they are no longer eligible based on the revised FAQs, can still be deemed to have made a good faith certification at the time they applied for the PPP provided by May 7, 2020, they return the funds they have received through the Paycheck Protection Program.