Current Questions Regarding PPP Loans and Forgiveness. In the PPP Application, borrowers are required to certify in good faith that  “Current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant”. But what does that mean? With stiff penalties for purposeful violations (up to 30 years in jail), there have been a TON of questions:

• Should I return my PPP funds under the Safe Harbor rule?

• We have money in the bank (cash reserves), will my forgiveness be limited due to my cash reserves?

• We could liquidate assets if necessary, will we be penalized for not doing that first?

Good News! The answer (in most cases) is no! A recent FAQ Update from the SBA answers this question and alleviates MANY fears (See especially question 46 of the FAQ doc.

To download a copy of the FAQ document go to this LINK. Scroll down to the button: "SBA FAQ Document".

To download a copy of a PPP loan disbursement control Excel spreadsheet go to our COVID-19 resource page. LINK Scroll down to the button and click and it will download to your computer. This spreadsheet will help you keep track of all expenses that are eligible for meeting the requirements for loan forgiveness. (Thank you Pastor Mike Popovich for passing along this tool.)

In short, loans under 2 million dollars will automatically be considered to have met the “Good Faith” certification. This is great news for churches and many small businesses as most fall into this category. Additionally, if a borrower is found to not meet the certification, they will be notified and given the opportunity to return the funds without penalty. (Source: Chaney & Associates Collaborative Stewardship)