October 28, 2020

Volume X, Number 302

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PPP Safe Harbor Extended to May 14

Borrowers now have until May 14, 2020 to decide whether to return Paycheck Protection Program (PPP) funds within a safe harbor period provided by the U.S. Small Business Administration (SBA). The SBA released FAQ 43 on May 5th, just two days prior to the initial May 7th deadline, stating that the safe harbor period would be automatically extended for all borrowers to May 14th. SBA also noted that it intends to provide additional guidance on how it will review the certification prior to May 14th. The text of the new FAQ is provided here: 

“43. Question: FAQ #31 reminded borrowers to review carefully the required certification on the Borrower Application Form that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” SBA guidance and regulations provide that any borrower who applied for a PPP loan prior to April 24, 2020 and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith. Is it possible for a borrower to obtain an extension of the May 7, 2020 repayment date? 

Answer: SBA is extending the repayment date for this safe harbor to May 14, 2020. Borrowers do not need to apply for this extension. This extension will be promptly implemented through a revision to the SBA’s interim final rule providing the safe harbor. SBA intends to provide additional guidance on how it will review the certification prior to May 14, 2020.”

For additional information on the certification requirements and safe harbor period, please review our May 1st Client Alert. In that alert we provided a list of factors to consider when determining whether the certification was made in good faith and suggested borrowers keep detailed records to support the loan request. 

We will continue to monitor the ever-changing regulations and guidance on the PPP and provide updates as warranted. 

Copyright © 2020 Womble Bond Dickinson (US) LLP All Rights Reserved.National Law Review, Volume X, Number 127
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Stephanie Few  Womble Dickinson Law Firm  Charleston SC Tax Law for Corporate Re locations
Partner

Investigate South Carolina’s largest economic development deals of the past 20 years, and chances are Stephanie Few played a role in making them happen. One of the biggest assets she brings to clients is her familiarity with local and state decision-makers throughout the Southeast, and particularly in South Carolina, where Stephanie had previously served as the City of Charleston’s Director of Economic Development. When the New York Times profiled Charleston’s economic development boom in 2017, Stephanie was one of the local leaders the Times turned to for insight.

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Howard King Corporate Lawyer Womble Bond Dickinson

Howard’s practice focuses primarily on the representation of multinational companies, private equity investors, family offices, and financial institutions in domestic and international mergers and acquisitions, joint ventures, recapitalizations, corporate financings, project financings, and other sophisticated transactions. Howard has advised public and private companies in a variety of industries, including manufacturing, technology, energy, real estate, logistics and transportation, finance, and environmental.

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Sarah J. Wilk Corporate Attorney Womble Bond Dickinson Boston, MA
Associate

Sarah focuses her practice on a broad range of general corporate matters, including, mergers and acquisitions, corporate finance transactions, corporate governance, early stage corporate formation and federal securities law compliance. She counsels both public and private companies and advises companies and their boards on fiduciary duty matters, commercial contracts and a broad array of day-to-day corporate matters. 

Experience

  • Represented private company engaged in insurance technology business in asset sale to a strategic buyer.
  • Advised public company...
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