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Treasury Issues Further Clarity on Certification for PPP Loans


Note: This article was originally published on May 13, 2020, but updated on May 14, 2020, with the extended certification deadline.

The Treasury Department has released FAQ #46 regarding the certification requirements for a business that receives a loan through the Paycheck Protection Program (PPP). The application requires borrowers to make a good faith certification that the “current economic uncertainty makes this loan request necessary to support the ongoing operations of the applicant.”

The FAQ provides the following clarity:

  • Borrowers and their affiliates with PPP loans under $2 million will be deemed to have made the certification in good faith. The determination was based on the assumption that most borrowers below this threshold are less likely to have access to adequate sources of liquidity in the current economic environment.
  • Borrowers and their affiliates with PPP loans of $2 million or above are still subject to an audit. They should evaluate and document their ability to satisfy the good faith certification requirement. Borrowers who return the loan funds by May 18, 2020 (the SBA extended the May 14 safe harbor deadline to May 18 in FAQ #47), will be deemed to have made the certification. For borrowers who retain the loan but lack an adequate basis for the certification, the SBA will seek repayment of the loan balance and inform the lender that the borrower is ineligible for loan forgiveness. If the borrower repays the loan after receiving this notification, the SBA will not pursue administrative enforcement or referrals to other agencies.

The full text of the FAQ can be found here.

If you have any questions about your eligibility for a PPP loan, please contact David Killion, Transaction Advisory Principal, at 314.983.1304 or, Bianca Sarrach, Advisory Principal, at 314.983.1365 or, or Jen Vacha, Tax Partner, at 636.754.0230 or


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