The US Treasury issued new guidance via question and answer on May 13, 2020 regarding how the SBA will deal with the good-faith certification concerning the necessity of applicant loans. Direct from their answer is the following when addressing PPP loans under $2 million, “Any borrow 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 in good faith.”
With a number of businesses confused and thus concerned about how the SBA would interpret economic uncertainty and necessity in light of recent developments and media reports, we hope this new information puts those concerns to rest.
In addition, for any borrowers that received loans in excess of $2 million and thus do not meet this safe harbor this question and answer also addresses you. It states that you still will be eligible for funding but if under SBA review it is determined that there is not an adequate basis for the good-faith certification you would be required to return the outstanding loan balance with no opportunity for forgiveness. However, the SBA will not pursue administrative enforcement or referrals to other agencies based on its determination.
See the below link for the question and answer being referred to (question #46). If you have any further questions, please reach out at your convenience.
