In response to widespread criticism that numerous large and well-funded companies obtained Paycheck Protection Program (PPP) loans, which foreclosed opportunities for needy small businesses, the SBA has taken several steps to significantly tighten its guidelines regarding borrower need and eligibility. The SBA has now indicated that borrowers must carefully consider the required certification that the current economic uncertainty makes a PPP loan necessary to support the company’s ongoing operations. Borrowers who have already received a PPP loan but who cannot demonstrate their economic need for the loan under the SBA’s clarified guidelines may repay the loan by May 7, 2020, with no penalty (i.e., the “Safe Harbor”). Please click here to learn more about the borrower certification and Safe Harbor provision for PPP loans.