SBA Extends “Necessity” Certification Return-By Date to May 18, 2020
Yesterday afternoon the SBA extended until May 18, 2020 the PPP loan return-by date related to the PPP loan “necessity” certification. This is the second extension of the return-by date which allows PPP borrowers who determine they cannot meet the necessity certification required for all PPP loans to return the funds. This extension is intended to allow PPP borrowers to consider how the safe-harbor announced yesterday related to the necessity certification (FAQ46) might apply to their situation .
As indicated by the SBA in FAQ45, for purposes of the Employee Retention Tax Credit, borrowers that return the PPP funds by the return-by date will be treated as though they had not received a PPP loan. This will allow such borrowers to take advantage of the tax credit to the extent they are otherwise eligible.
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