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Safe Harbor - PPP Loans

Safe Harbor - PPP Loans

PPP Loan Certification Safe Harbor

The PPP loan application includes certifications that current economic uncertainty makes this loan request necessary to support the ongoing operations of the applicant and the funds will be used to retain workers and maintain payroll or make mortgage interest, lease and utility payments. If the funds are knowingly used for unauthorized purposes, the federal government may hold the applicant legally liable, such as for charges of fraud.

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As the PPP funding ran short, on April 23, Treasury issued guidance that all borrowers must assess their economic need for a PPP loan. Borrowers must make this certification in good faith, taking into account their current business activity AND their ability to access other sources of liquidity sufficient to support their ongoing operations.

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This applied to all borrowers, but at the same time provided no guidance as to the level of detail necessary to address these issues. Many borrowers were then afraid to use the funds and were considering whether to return them by May 14, 2020 in order to avoid any possible legal charges.

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We have GOOD NEWS! The SBA and Treasury just announced a safe harbor that will apply to reviews of good faith certifications on the PPP loan applications. Any borrower, together with its affiliates, that 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. Thus, for applicants under this threshold, documentation to support the uncertainty for the loan application should not be needed.

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  So, what's next?

If you received SBA PPP loans, you need to be tracking what you're paying for with this loan money. 

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You may be interested to know that RBSK can assist in tracking your spending and with loan forgiveness applications - right now. Our team can help you track and document all spending, to ensure that you'll be ready to apply for forgiveness.

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Contact your trusted advisor at RBSK Partners PC to receive help at 800-676-7567

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By electing to use RBSK Partners PC in an advisory capacity, we do not guarantee loan forgiveness eligibility nor acceptance of your application. Eligibility results vary due to specific circumstances. Please contact us if you have any further questions.  

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For more information visit our COVID-19 Guidance Center.


Tips of where to get your information about the virus
Centers for Disease Control and Prevention CDC.gov
Indiana State Department of Health News ISDH.in.gov
World Health Organization WHO.int

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Where to find local updates about the virus
Decatur County Health Department Facebook Page
Bartholomew County Health Department Facebook Page
Ripley County Health Department Facebook Page
Franklin County Health Department Facebook Page
North Vernon Plain Dealer & Sun Homepage

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We are committed to serving clients with care, and we are confident we are taking precautionary measures to promote the health and safety of our staff and clients. We know that this is a stressful time for everyone, and we hope that you, your family and our community stay safe.

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Please call us at 800-676-7567 if you have any questions



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