SBA Issues Guidance on Loan Forgiveness and Audit Procedures

Title:
SBA Issues Guidance on Loan Forgiveness and Audit Procedures
Publication:
Riker Danzig Corporate Client ALERT re SBA Issues Guidance on Loan Forgiveness and Audit Procedures
Attorneys:
Practices:

The Small Business Administration (SBA) has released two new interim final rules providing additional guidance with respect to loan forgiveness and audits of loans under the Paycheck Protection Program (PPP).  The SBA previously released the loan forgiveness application (available here) on May 17, 2020.  Below are some observations on the application and new rules.

Loan Forgiveness

SBA Audit Procedures

The SBA has the authority to review any PPP loan, and such review may include a review of a borrower’s eligibility for PPP funds, loan amounts and use of proceeds, and loan forgiveness amounts.  In keeping with its prior announcement regarding audits of all PPP loans in excess of $2 million, the forgiveness application requires the borrower to check a box if it and its affiliates collectively borrowed more than $2 million through PPP.

Please contact Jason NavarinoRich LomuscioHannah Greendyk or any member of Riker Danzig’s Corporate and Tax Departments if you have questions about how this guidance applies to you. 

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