The Trump Administration extended the deadline for companies to repay PPP loans from May 7, 2020 to May 14, 2020. The decision comes after many groups and organizations requested the administration provide additional time for companies to determine if they would return the funds. Clarification from the administration is expected to address confusion over guidance requiring borrowers to certify that “current economic uncertainty” made the loan request necessary and they must also take into account their access to “other sources of liquidity.” Many borrowers have been concerned over whether to keep the funds or return them.
The SBA is extending the repayment date to May 14, 2020, and borrowers do not need to apply for an extension. The extension will be implemented through a revision to the SBA’s Interim Final Rule providing the safe harbor. The SBA is expected to release additional guidance before May 14, 2020.
More details can be found here.