The Small Business Administration (SBA) has just published additional guidance in the form of FAQ # 46 which provides for a safe harbor for eligibility for those applicants whose Paycheck Protection Program (PPP) loan is below $2 million. Under the safe harbor, an applicant’s loan request will be deemed to have been made in “good-faith” for purposes of making the certification that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” The safe harbor allows applicants with loans under $2 million to have outside liquidity and still be eligible for the PPP loan, but does not necessarily guarantee forgiveness for these applicants.
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