Cadwalader Discusses Covid-19, PPP Loans, and the Safe Harbor Date for Returning Loans

The Small Business Administration (“SBA”), in consultation with the Treasury Department, issued FAQ #43 on May 5, 2020 extending by a week the time within which a borrower has to repay a previously issued SBA loan under the Paycheck Protection Program (“PPP”) in order to take advantage of a presumption that a borrower certified necessity for the loan in good faith at the time of the loan application.[1]  This memo updates Cadwalader’s recent Clients & Friends Memo[2] that provided the guidance below outlining criteria that a borrower should consider in deciding whether to return … Read more