SBA gives clarity on Paycheck Protection Program Eligibility

Since its opening and reopening, the Paycheck Protection Program has been a hot topic. In the original opening of the program, many companies who were not eligible were awarded funds due to a loose description of eligibility, namely the "good-faith certification."

On May 8, 2020, the U.S. Small Business Administration provided guidance on the "good-faith certification" aspect of the Paycheck Protection Program Loan application process. The bottom line is if your original loan amount is under $2 million, you are safe. If your loan is over $2 million, it will be audited. If, during the audit, your loan is found to not be "eligible," the loan will need to be repaid. If your loan is in this second category, as long as the loan is repaid, then U.S. Small Business Administration (SBA) will not pursue administrative enforcement. In either case, your eligibility does not affect the loan guarantee.

Read the full release from the SBA. For more information on the Paycheck Protection Program, and if or how this affects you, contact us.