Foster Swift Legal Update E-blast
Taylor A. Gast

PPP Loan Certification – May 7 Deadline

PPP FormsEach Paycheck Protection Plan (PPP) loan applicant certifies that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” Recent guidance from the Small Business Administration (SBA) and U.S. Department of Treasury casts doubt on whether some applicants could make this certification in good faith. This guidance indicates that both public and private companies should consider their ability to make the required certification in good faith, taking into account their current business activity and ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business. Any borrower that applied for a PPP loan prior to the issuance of this guidance and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith. Failing to comply with these rules could result in reduced loan forgiveness and other applicable penalties levied on the applicant. Knowingly making a false statement on a PPP loan application could result in significant fines or imprisonment.

Many clients are choosing to document their certification decision in case it is challenged in the future. If you have any questions or concerns about PPP eligibility or the certification discussed above, please contact your Foster Swift attorney, or the author of this publication:

Taylor will be among the presenters conducting a free webinar on Thursday, May 7. The purpose of this webinar is to assist PPP borrowers in developing a loan forgiveness plan. For more information and registration, click here.

Foster Swift's lawyers are ready to help with these urgent and novel questions related to the coronavirus pandemic. If you have questions, we encourage you to contact your Foster Swift attorney or one of our Coronavirus Task Force coordinators as listed below:

While the information in this article is accurate at time of publication, the laws and regulations surrounding COVID-19 are constantly evolving. Please consult your attorney or advisor to make sure you have the most up to date information before taking action.

Attorneys

Jump to Page

Foster Swift Collins & Smith PC Cookie Preference Center

Your Privacy

When you visit our website, we use cookies on your browser to collect information. The information collected might relate to you, your preferences, or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. For more information about how we use Cookies, please see our Privacy Policy.

Strictly Necessary Cookies

Always Active

Necessary cookies enable core functionality such as security, network management, and accessibility. These cookies may only be disabled by changing your browser settings, but this may affect how the website functions.

Functional Cookies

Always Active

Some functions of the site require remembering user choices, for example your cookie preference, or keyword search highlighting. These do not store any personal information.

Form Submissions

Always Active

When submitting your data, for example on a contact form or event registration, a cookie might be used to monitor the state of your submission across pages.

Performance Cookies

Performance cookies help us improve our website by collecting and reporting information on its usage. We access and process information from these cookies at an aggregate level.

Powered by Firmseek