The U.S. Department of the Treasury and the Small Business Administration have released updated Paycheck Protection Program FAQs which state that “any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.”
The statement comes in the wake of speculation that PPP applicants who applied for the relief while having access to preexisting sources of liquidity could be on the receiving end of administrative action from the SBA due to the certifications signed in the loan document. PPP loans can be repaid by the borrower by May 18 in order to avoid any potential penalties relating to the good faith certification.