PPP borrowers of More Than $2M may be required to demonstrate that need existed. Borrowers can return funds by May 14th to avoid scrutiny.

The CARES Act requires that a PPP loan applicant certify, in good faith, that “the uncertainty of current economic conditions makes necessary the loan request to support the ongoing operations of the eligible recipient.” The PPP loan application issued by the SBA phrases the certification slightly differently: “Current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” On April 23rd, Treasury explained a bit about the certification in its FAQ 31.