Courts, Boards, & GAO

Trending Now

Who Needs Privity? Subcontractor Survives Jurisdictional Challenge Through Prime Sponsorship of Its Claim • GAO Reaffirms that Proposals Without a Realistic Chance of Award Do Not Belong in the Competitive Range • Protests are Starting to Test the Limits of Procurement Speed • A Judge Ruled that SBA Mishandled the ATI Case. But the Company Remains Suspended. • Anthropic and Iran – the Government Contracting State of Play

Published on May 13, 2020 • Law

SBA Extends PPP “Safe Harbor” to May 14, 2020, and DOJ Announces First PPP Charges

Andrey_Popov | Shutterstock

By Aron C. Beezley, Frederic L. Smith Jr. & Elizabeth M. Boone by Bradley Arant Boult Cummings

The Small Business Administration (SBA) updated its answers to frequently asked questions about the Paycheck Protection Program (PPP) on May 5, 2020, as follows:

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.

The SBA’s update in this regard comes on the same day that the Department of Justice publicly announced that two individuals in New England were the first in the nation to be charged with “allegedly defrauding” the PPP.

Get daily insights on bid protests, CDA claims, and contract litigation that shape the GovCon landscape with our Protests & Claims newsletter, delivering up-to-the-minute intelligence Monday–Saturday — Subscribe here.