COVID-19 Updates

Update regarding PPP Loans: “Safe Harbor” Guidance Released (and it’s good news!)

By Whitney Harper on 05.13.2020
Person typing on the keyboard

We indicated that the SBA promised to release additional guidance regarding the certification of need for PPP Loan funds, and the “Safe Harbor” for return of funds, which expires tomorrow, May 14.

SBA has just released that guidance, and it’s remarkably reasonable.


  • For loans under $2m, the borrower will be presumed to have met the criteria for the good-faith certification of need.  
    • NOTE: This $2m threshold is aggregated for borrowers with affiliates that also borrowed PPP funds.
  • Borrowers with loans of $2m or more may still meet the criteria for good-faith certification of need, but will be subject to review by the SBA.  If the SBA finds that the criteria were not met, SBA will request repayment and deny any request for forgiveness.  So long as the borrower repays the PPP Loan in full if requested, SBA will not pursue administrative or criminal enforcement.

Action Steps:

  • Document the basis for your certification of need.  All borrowers (especially those with loans of $2m or more) should still document the basis for their certification of need.  As we have seen, the landscape continues to change, and an ounce of prevention may be worth many $$ of PPP Loan (and forgiveness).
  • Loans >$2m: Prepare to repay if required.  Borrowers with loans of $2m or more should prepare for how they will repay the loan in full if SBA’s review finds that repayment is required.

Visit our Resources Page to access up-to-date, curated guidance regarding COVID-19 Relief Programs (including current criteria for PPP Loans) and Returning to Work Following COVID-19.

As always, you are welcome to call your ADVOS lawyer with any questions you have about the COVID-19 Relief Programs or returning to work following COVID-19.  We’re in this together and are on-call for you.

In your corner,

Whitney (+ the ADVOS team)