SBA Further Extends Repayment Date for PPP Loans; Allows for Certain Loan Increases
May 14, 2020
By Richard Shapiro
We recently reported on new guidance from the Small Business Administration (“SBA”) regarding the required good-faith certification by Payroll Protection Program (“PPP”) borrowers. Borrowers with concerns as to this “necessity of the loan request” certification had been given until May 14, 2020 to repay their PPP loan. That deadline has now been extended to May 18. Borrowers do not need to apply for this extension.
In addition, some PPP loans were approved to partnerships or seasonal employers before additional guidance (April 14 in the case of partnerships and April 28 in the case of seasonal employers) was issued. As a result, those businesses may not have received PPP loans in the maximum amount for which they are eligible. Accordingly, the SBA has now authorized all PPP lenders to increase existing PPP loans to partnerships or seasonal employers to include appropriate amounts to cover partner compensation in accordance with the interim final rule posted on April 14, 2020 or to permit the seasonal employer to calculate its maximum loan amount using certain criteria posted on April 28, 2020.