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- An SBA and Treasury Department Interim Final Rule authorizes the SBA to audit all PPP loan borrowers' compliance with loan requirements. The SBA may review a PPP loan anytime, including reviewing tax filings.
www.findlaw.com › smallbusiness › business-financesCould My Small Business Get Audited for a PPP Loan? - Findlaw
- WHO IS AUDITED? The SBA may review any borrower’s PPP loan at any time. Nevertheless, the Treasury and SBA have created a “safe harbor” for borrowers that received less than $2 million in PPP funds.
- WHAT IS THE SBA LOOKING FOR? The SBA can review all aspects of the PPP loan in connection with a forgiveness audit, including whether the borrower was eligible to participate in PPP, calculated the loan amount correctly, spent loan proceeds on allowable uses, and is entitled to loan forgiveness.
- WHAT SHOULD YOU DO IF YOU ARE AUDITED? Based on the information it receives from the Questionnaire and supporting documentation, the SBA may request additional information.
- WHAT IS THE STANDARD OF REVIEW? Although the SBA audit looks at how the business performed afterit received the PPP funds, the audit is focused on the time of the application, and specifically, the principal’s certification, made under the pains and penalties of perjury, that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”
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Does SBA audit PPP loan forgiveness applications?
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SBA Form 3508S does not require borrowers to provide additional documentation upon forgiveness submission, but borrowers should be prepared to provide relevant documentation if requested as part of the loan review or audit processes.
Mar 23, 2022 · The Small Business Administration (SBA) is auditing Paycheck Protection Program (PPP) loan forgiveness applications for both First Draw and Second Draw PPP loans, including for nonprofit organizations that received loans.
Apr 15, 2024 · According to the Interim Final Rule, the SBA is authorized to audit all PPP Loan borrowers’ compliance with the eligibility and other requirements established at the time of a borrower’s application or related to the terms of a borrower’s application.
Jan 21, 2021 · The CARES Act, including subsequent amendments, earmarked over $600 million through the Paycheck Protection Program (PPP), administered by the Small Business Administration (SBA), for potentially forgivable loans to support eligible small businesses impacted by COVID-19.
Nov 27, 2023 · The SBA has the authority to review and audit PPP loan and forgiveness applications for up to six years (for loans over $150,000) after it forgives the loan, and PPP borrowers must maintain documentation supporting their applications during this potential audit period.
Jun 13, 2024 · The Small Business Administration (SBA) can audit your company if it got assistance under this program. An audit is within the SBA's discretion. The SBA has broad authority to conduct audits to ensure loan requirements and eligibility compliance.
