PPP Update: Good Faith Certification, Safe Harbor and Enforcement

Please note: This blog is current to the date of its publication, Thursday, May 14. For additional updates or assistance navigating these uncertain times, please contact us or visit our SST COVID-19 resource page.


In one of our previous COVID-19 response blogs, SST leaders delved into the Paycheck Protection Program’s (PPP) newly required good faith certification requirement, which verifies that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”

Recently, the Small Business Administration (SBA) published an updated FAQ extending the repayment date for the safe harbor period to May 18 and noting that “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.”

Those receiving PPP loans in excess of $2 million “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.”

Finally, the updated FAQ notes that, if the borrower is not eligible for loan forgiveness and repays the loan after receiving notification from the SBA, “the SBA will not pursue administrative enforcement or referrals to other agencies based on its determination with respect to the certification concerning necessity of the loan request.”

COVID-19 assistance programs like the PPP are comprehensive and can be complex to navigate, but SST is here to help. We’re closely monitoring any updates and encourage you to contact us with any questions or concerns.

Special thanks to SST Partner Emily Cook for providing the content for this post.