COVID-19 UPDATE 27
THE U.S. SMALL BUSINESS ADMINISTRATION ISSUES
EXTENSION FOR SAFE HARBOR LOAN REPAYMENT DATE
The U.S. Small Business Administration (SBA) yesterday issued several additional interim guidance questions and answers to its existing “FAQ” document for lender and borrower participants of the federal Paycheck Protection Program. Included with the new questions was Question 43, which answers that the SBA will be extending the “Safe Harbor” loan repayment date from May 7, 2020 to May 14, 2020.
“43.
Question:
FAQ #31 reminded borrowers to review carefully the required certification on the Borrower Application Form that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” SBA guidance and regulations provide that any borrower who applied for a PPP loan prior to April 24, 2020 and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith. Is it possible for a borrower to obtain an extension of the May 7, 2020 repayment date?
Answer:
SBA is extending the repayment date for this safe harbor to May 14, 2020. Borrowers do not need to apply for this extension. This extension will be promptly implemented through a revision to the SBA’s interim final rule providing the safe harbor. SBA intends to provide additional guidance on how it will review the certification prior to May 14, 2020.”
If you have not reviewed the SBA “FAQ” document, it can be viewed
HERE
.
The SBA document has been updated several times and provides guidance concerning the definition of small business/500 employees, the business “Affiliation” rule, definition of “payroll costs”, PPP loans to cover paid sick leave, time period to determine number of employees and payroll costs and other pertinent clarifications.
We suggest that you and your trusted advisors should monitor the SBA “FAQ” site for upcoming updates.
UTCA’S PAYCHECK PROTECTION PROGRAM SAFE HARBOR WEBINAR
IS AVAILABLE ON DEMAND ON THE UTCA WEBSITE
UTCA’S Paycheck Protection Program “Safe Harbor” webinar held yesterday, May 5, 2020 with legal and accounting experts to explain Treasury’s new requirements and the safe harbor provisions was well received by webinar participants. Our speakers were:
·
Jack Callahan
CohnReznick
·
Bill McNamara
The Curchin Group
·
Seth Tipton
Florio Perrucci Steinhardt Cappelli Tipton & Taylor
Our experts also discussed what was known on the latest development regarding non-deductibility of loan amounts forgiven.
CLICK HERE
to view the webinar on the UTCA’s website
MEMBER WEBINAR ANNOUNCEMENTS
In a continuing effort to bring helpful information to UTCA members, the Association is sharing the following COVID-19 industry-related announcements and webinars:
- Thursday, May 7th 3-4 pm: Insurance of America (IOA): Return to Work Strategies with RWJBH Infectious Disease Specialist Dr. Meg Fischer and Ford Harrion Attorney Michelle Tatum register HERE
- McCarthy & Company, PC on-demand webinar regarding Loan Forgiveness Under The PPP can be accessed HERE
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If anyone has questions concerning this notice, please contact us at the UTCA office 732-292-4300.
