New rules from the Small Business Administration and Treasury Department require borrowers to certify they need the funds from Paycheck Protection Program loans. The analysis in the NADA Loan Certification Guide provides helpful guidance for certifications dealers have made.
- In the PPP FAQs, question 46 establishes a new safe harbor for borrowers who received PPP loans of less than $2 million (and effectively removes the prior May 14, 2020, repayment deadline).
- For loans in excess of $2 million: Borrowers will likely be audited (expected to have basis for a good-faith certification).
- If the SBA deems that a borrower’s certification was not justified, the PPP loan will not be forgiven and must be repai