Treasury Announces Additional Guidance Regarding PPP

This guidance will likely be good news to many members who received PPP loans of $2 million or less.
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The National Association of REALTORS® Vice President of Policy and Industry Relations Joe Ventrone has forwarded guidance that the US Treasury Department released this morning pertaining to how the government will review PPP loan borrowers’ good-faith certifications of loan necessity. Highlights from the guidance: 
 
SBA, in consultation with the Department of the Treasury, has determined that the following safe harbor will apply to SBA’s review of PPP loans with respect to this issue: 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. SBA has determined that this safe harbor is appropriate because borrowers with loans below this threshold are generally less likely to have had access to adequate sources of liquidity in the current economic environment than borrowers that obtained larger loans. This safe harbor will also promote economic certainty as PPP borrowers with more limited resources endeavor to retain and rehire employees. In addition, given the large volume of PPP loans, this approach will enable SBA to conserve its finite audit resources and focus its reviews on larger loans, where the compliance effort may yield higher returns.
 
Borrowers that receive loans in excess of $2 million may also be deemed to have made the necessity certification in good faith, based on their individual circumstances in light of the language of the certification and SBA guidance (as will likely be determined under an audit).
 
This guidance will likely be good news to many NAR members who received PPP loans of $2 million or less.

READ THE U.S. DEPARTMENT OF THE TREASURY GUIDANCE 


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