SBA clarifies Paycheck Protection Program’s good-faith certification provisions

The Small Business Administration today provided further clarity on how it reviews borrowers’ required good-faith certification for Paycheck Protection Program loan requests. The agency said that it established “safe harbor” protections for PPP loans’ reviews.

According to SBA, “any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.” Additionally, SBA said that borrowers with loans greater than $2 million who do not satisfy this safe harbor “may still have an adequate basis for making the required good-faith certification, based on their individual circumstances in light of the language of the certification and SBA guidance.”