06 Jun PPP and Audits: Stay Informed
As the list of PPP recipients grows, so does the agencies’ need for auditing across all industries. Since the first round of funding was depleted so quickly, and many large businesses were approved for loans they didn’t need, the SBA is stepping up efforts to make sure every loan is going to the right business, for the right amount, for the right purpose. The audit will be an independent review to verify the business’s eligibility and ensure the proper guidance is being followed. Audits help ensure that public funds are being used appropriately.
- Who will get audited? Did you know that any business that receives a PPP loan may be audited? As part of the loan conditions, you allowed the lender to share tax information with the SBA for loan compliance and SBA loan reviews.
- What are some things that the SBA may verify? The auditing process will likely be overseen by the SBA’s Office of Inspector General (OIG), an independent
and objective oversight office. The OIG will want to ensure that the certifications you made when applying for the PPP were accurate and made in good faith.
In the forgiveness process, the auditor will attempt to confirm that the claimed expenses were indeed made, by examining your payroll records and expense documentation.
In short, the auditor will be looking for proof that your application was accurate and truthful. Your business/PPP loan could be audited after getting approved, or during the forgiveness portion of the process.