Good news! The Small Business Administration released updated guidance today clarifying "economic uncertainty" certifications made by PPP borrowers. Under Q&A #46 the requisite good-faith certification of economic uncertainty will be conclusively presumed for loans of less than $2 million. As set forth in the SBA’s answer, this “safe harbor” allowance takes an essentially prudential and easily applicable approach.
In Illinois, April 30, 2020 marks Day 40 of Governor Pritzker’s stay-home order, confining all residents and shutting down all operations, except for “essential activities.” Is the Order legal? Do such government mandates violate First Amendment freedoms, as some states courts have ruled? How can nonprofit leaders plan well, safely, and legally for moving through and beyond COVID-19?
As of April 24, 2020, the SBA’s Payment Protection Program and Economic Injury Disaster Loan programs were replenished with $310 billion in PPP and $60 billion in EIDL additional funding. The SBA has correspondingly updated its April 6, 2020 FAQs. Organizations with pending applications and new applicants thus may both garner these highly advantageous loans, like the first round approved March 27, 2020, however, this additional funding is expected to run out quickly.