If the average annual wage or salary as of December 31, 2020 is equal to or more than the annual wage or salary as of February 15, 2020, the safe harbor applies. For a PPP loan made after December 27, 2020, they will use the last day of your 8 to 24 week covered period.
What does safe harbor mean for PPP?
In effect, the SBA has created a new safe harbor rule for borrowers with smaller loans to satisfy the requirement that they make the good faith certification that their PPP loan was necessary to support their ongoing operations: “Any borrower that, together with its affiliates, received PPP loans with an original …
Can I return PPP loan after safe harbor?
Under the SBA’s new guidelines, borrowers now have until Monday, May 18 to return PPP funds. Any borrower that returns PPP funds in full by May 18 will be deemed by the SBA to have made the certification regarding the economic necessity for the loan in good faith.
What is the PPP safe harbor deadline?
MAY 18, 2020
The safe harbor deadline for return of PPP loans HAS BEEN EXTENDED TO MAY 18, 2020. Borrowers with PPP loan amounts of less than $2 million (tallied across all affiliates) will be deemed to have made the “necessity” certification in good faith.
Do restaurants qualify for PPP safe harbor?
Unless you are a business that clearly qualifies for the safe harbor – most restaurants, non-essential retailers, etc. If you are a business that does not clearly qualify for the business activity safe harbor and will not qualify for full PPP forgiveness due to FTE reductions, do your homework.
When does safe harbor apply for a PPP loan?
When is safe harbor deadline for paycheck protection program?
Treasury, determined that extending the safe harbor deadline from May 14, 2020 to May 18, 2020 would afford Paycheck Protection Program borrowers time to review SBA’s May 13, 2020 guidance and decide whether to avail themselves of the safe harbor. SBA previously announced this intended extension in nonbinding guidance published on May 13, 2020. See
How does FTE reduction safe harbor 1 work?
FTE Reduction Safe Harbor 1 Provides a safe harbor from reductions in forgiveness , based on reductions in full-time equivalent (FTE) employees, for borrowers that are unable to return to
What does safe harbor mean in a law?
What is a safe harbor? A safe harbor is a provision that can be included in rules and laws to ensure that people don’t accidentally violate rules because of a technicality or situation that is outside of their control.