May 7 Deadline to Return PPP Loans is Extended to May 14
Less than two weeks ago, the SBA explained in Q&A #31 that PPP borrowers who, after reflection, believe they may not have met the requirement that their PPP loans were truly needed, could return those funds on a no-questions-asked basis by May 7. We explained this in detail in an April 29 article, and shared our thoughts on the incredibly vague and subjective guidance that borrowers would be forced to use to make this important decision.
Yesterday, just hours from the May 7 “off-ramp,” Q&A #43 was issued, extending the deadline for returning funds from May 7 to May 14. This extension is automatic, with action by May 7 no longer needed on the part of a borrower.
Consistent with our earlier article, we suggest that borrowers use this time between now and May 14 to accumulate data that was used at the time the application was made that supports the need for the funds. Unfortunately, a solid, black and white definition of “need” remains elusive.
For more information or a discussion on how this may impact you, please contact your BNN advisor at 800.244.7444.
Disclaimer of Liability: This publication is intended to provide general information to our clients and friends. It does not constitute accounting, tax, investment, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.