The U.S. Small Business Administration (SBA) and Treasury provided new guidance on May 13 for Paycheck Protection Program (PPP) loans, with officials saying loans of less than $2 million won’t face heightened scrutiny.
In an updated FAQs document, the SBA and Treasury said they will presume borrowers of less than $2 million in PPP loans submitted loan requests in good faith.
Borrowers with loans below the $2 million threshold are generally less likely to have had access to adequate sources of liquidity in the current economic environment than borrowers that obtained larger loans, the FAQs document said.
Borrowers with loans greater than $2 million that do not qualify for the safe harbor may still have an adequate basis for making the required good-faith certification.