Chairman and CEO H. Lynn Harton of United Community Bank will be interviewing Nelson Mullins partner Brad Rustin on the Paycheck Protection Program. The webinar interview will cover questions submitted by participants as well as the following topics:
- Additional guidance released April 23 by the SBA and Treasury. “Any borrower that applied for a PPP loan prior to the issuance of this guidance and repays the loan in full by May 7, 2020 will be deemed by the SBA to have made the required certification in good faith.” The guidance released on April 23 clarified that these standards also apply to businesses owned by private companies.
- New FAQs. While the new FAQs offer some additional information regarding the “necessity” requirement, there is still no bright-line, objective test, or set of metrics to determine “necessity.” Both the recent clarifications and comments by Treasury Secretary Mnuchin regarding intent to audit PPP borrowers emphasize the need to have a good faith basis for the certification and to back it up with good records.
- Be prepared to address possible media inquiries regarding your PPP loan. Media outlets have already petitioned the SBA, through the Freedom of Information Act, for a list of PPP loan recipients. If the SBA follows standard protocol, the name of companies that receive an SBA loan, along with the loan amount, will be disclosed publicly.