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    1 Reply Latest reply on May 6, 2020 10:19 AM by allied5718

    Cancelling/returning PPP after note signage and pending disbursement?

    oknirok Newbie

      Is there any guidance on the returning/cancellation of PPP once the funds have been disbursed (pending in my account)? My business situation has changed since my note signage and I don't think i can reconcile those changing circumstances with the terms of this loan. I have not spent any of the funds and the deposit is still pending in my business banking account.

       

      I have emailed ppp_help@bofa.com already but since I want to make sure this gets addressed before the May 7th "Safe Harbor Provision" date passes. Anyone have experience reaching an email inbox or phone number that could be of help?

        • Re: Cancelling/returning PPP after note signage and pending disbursement?
          allied5718 Wayfarer

          I am in the same situation. Waiting for a reply from my BoA banker.

           

          Note this latest update:

           

          This statement appears in the PPP FAQs issued May 5, 2020.

           

          1. 43. Question: FAQ #31 reminded borrowers to review carefully the required certification on the Borrower Application Form that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” SBA guidance and regulations provide that any borrower who applied for a PPP loan prior to April 24, 2020 and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith. Is it possible for a borrower to obtain an extension of the May 7, 2020 repayment date?

           

          Answer: SBA is extending the repayment date for this safe harbor to May 14, 2020. Borrowers do not need to apply for this extension. This extension will be promptly implemented through a revision to the SBA’s interim final rule providing the safe harbor. SBA intends to provide additional guidance on how it will review the certification prior to May 14, 2020.

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