Update on Paycheck Protection Program Issues

We recently advised that the SBA directed that all Paycheck Protection Program (“PPP”) applicants must meet the required “need certification”. The SBA had initially stated that borrowers who received a PPP loan who could not satisfy the need requirement may repay that loan in full by May 7 (the “Safe Harbor”). The SBA has now extended the repayment date for this Safe Harbor to May 14, 2020. In other PPP news, the SBA intends to issue a rule providing that an employer will not be penalized if an employee refuses to return to work, but the employer must make a good faith, written offer of rehire and document the employee’s rejection of the offer. Please click here to read these important PPP updates.