PPP Loan Amounts under $2 million Meet Good Faith Requirements

The Treasury Department continues to update a list of frequently asked questions regarding the CARES Act including the Payroll Protection Program (PPP). Recently we informed you of an update that instructed borrowers of the PPP loan to certify in good faith that their PPP loan request was needed under a new standard. What followed was a fair amount of confusion and frustration from many businesses in understanding this standard and how to re-certify that they behaved in good faith.

On May 13, 2020 the SBA and Treasury Department updated their list to address the issue in question 46 and concluded that a PPP borrower of less than $2 million including affiliates was deemed to have made the required certification concerning the necessity of the loan request in good faith.

To discuss any questions you may have, please contact a member of our team or reach out to us via our website.