SBA Extends Paycheck Protection Program (PPP) Loan Repayment Deadline to May 18

The SBA updated their FAQs announcing that it is extending the date by which certain recipients of PPP loans can repay the loan to May 18, to stay compliant with PPP rules.

PPP loans may be used to pay payroll costs, certain employee benefits relating to healthcare, interest on mortgage obligations, rent, utilities, and interest on any other existing debt.

The SBA regulations require the recipient to certify that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the recipient.” The regulations say that any borrower that applied for a PPP loan prior to the issuance of regulations and repays the loan in full by May 18 meets the safe harbor date.

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This article was last updated 5-15-20 at 11:00 am.