Great News from the SBA and Treasury
The Feds heard us! Regulations expected from the SBA and the Treasury Department were released today and we have some fantastic news for those of you who are recipients of PPP funds.
The new ruling makes it clear that loans under $2 million will have a safe harbor and not be subject to audits with respect to the issue of certification of a need made in good faith.
Secondly, for those loans over $2 million, the penalties and criminal prosecutions have been eliminated as long as the money is repaid if the SBA determines that no forgiveness is available to the borrower. This new guidance eliminates the need to respond to the Feds by tomorrow, May 14th, regarding keeping or returning the PPP funds.
Dealers over the $2 million level may be audited and, if it is determined that you received the funds without being able to substantiate ‘economic uncertainty’ or ‘necessity,’ you will simply be asked to pay back the loan proceeds.
FADA has been meeting with and expressing our concerns directly to our two Florida US Senators and our Governor and we are elated that our largest concerns have been addressed.
We will continue to seek more guidance from the SBA/Treasury so that you can have a better understanding of the specific requisites for demonstrating ‘necessity’ and ‘economic uncertainty.’ This information will help you greatly as you document the specifics that resulted in your individual requests.