Important Information Regarding CARES Act and PPP
Letter to Clients; RE: PPP Update 4.29.20
To our clients:
We are pleased to report that Atlantic Capital has received SBA authorization for all eligible and completed PPP loan applications submitted by our clients. Most of these loans authorized in the first round have been closed and funded. Documents for second round loans are being prepared and will be sent to you for closing and funding over the next few days.
As you may have learned, the Treasury Department has commented on the certification each PPP applicant must make concerning the necessity of the loan to support the ongoing operations of the applicant as a result of the current economic uncertainty. Specifically, applicants must consider whether they have “adequate sources of liquidity to support the business’ ongoing operations” as a part of their certification (see Frequently Asked Questions #31 and #37 on Treasury.gov). Such certifications will be met with increased scrutiny, especially for loans of $2 million and greater, and may result in severe consequences for borrowers who have failed to accurately certify the necessity of the loan.
As an approved SBA lender, Atlantic Capital was authorized to rely on your certification and did not assess the accuracy of your certification or any other representations made by you regarding your eligibility for a PPP loan. Our acceptance of your application and the funding of your PPP loan does not represent a confirmation that your certification was sufficient or that your application met all other eligibility requirements of the PPP loan program, as they may have been recently clarified.
We urge all borrowers to review their certifications in light of the Treasury Department’s recent guidance, which can be found in full on Treasury.gov, and to speak with your attorneys or other advisors if appropriate. If you feel your application for a PPP loan may not meet the current requirements of the program, you have the opportunity to withdraw your application. If your loan has already funded and you feel you do not meet the current requirements of the program, you may repay the loan funds by May 7, 2020, and the SBA will treat such repayment as being made in good faith.
If you want to withdraw your application or pay off your loan, please contact your Atlantic Capital banker.
President and CEO
Atlantic Capital Bank