On May 13, 2020, the US Treasury released additional guidance which highlights FAQ #46 related to a borrower’s required good-faith certification on the Payroll Protection Program application. Any borrower with loan proceeds under $2M will be deemed to have met the economic uncertainty requirement. The borrowers who received PPP loans in excess of $2M, and other PPP loans as the SBA deems appropriate, will still be subject to SBA audit. However, if under audit, the SBA deems the borrower to not have met the economic uncertainty requirement, the SBA will require the borrower to pay back the loan. If the borrower repays the loan after receiving this judgement, the SBA will not pursue the borrower any further nor refer the case to any other agencies.
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