PPP loans: return the funds or seek forgiveness?
The Small Business Administration announced it extended the deadline to May 14, 2020, for borrowers under the Paycheck Protection Program (PPP) to return loans they may not be able to certify are necessary for their ongoing operations in uncertain economic conditions. Included in the PPP is a provision that requires borrowers make a good faith certification that their loan is necessary to support their ongoing operations in the wake of the “uncertainty of current economic conditions.” The statutory language would appear to have broad application given the current economic climate; however, eligibility is complicated because the Coronavirus Aid, Relief, and Economic Security (CARES) Act offers few guidelines for the loan program.
Watch our complimentary on-demand webinar for an in-depth review of the good faith certifications as well as our recommendations of specific considerations to be made and documentation to be prepared for each of them.
Request the PPP good faith certification considerations and documentation template
- Baker Tilly has a comprehensive set of solutions available to assist qualifying businesses that have received, or will receive, loan proceeds that may be eligible for forgiveness under the Paycheck Protection Program.
- FAQ on the CARES Act
- Baker Tilly specialists understand your industry and how an unplanned event such as the COVID-19 outbreak can affect your organization, employees, customers and suppliers.
For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team.
