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Paycheck Protection Program loans under $2M not subject to audit, SBA says

Written by Jasir Jawaid

The U.S. Small Business Administration will not audit borrowers who receive loans of less than $2 million under the Paycheck Protection Program in a bid to "conserve its finite audit resources."

When submitting a PPP application, all borrowers must certify in good faith that the economic uncertainty makes this loan request necessary to support their ongoing operations. The SBA said loans below this threshold are generally less likely to have had access to adequate sources of liquidity in the current economic environment, and that this would allow it to focus its reviews on larger loans.

The SBA also said an employer that repays a loan by the safe harbor deadline of May 14 will be treated as though the employer had not received a covered loan under the PPP for purposes of the employee retention credit.

This article was published by S&P Global Market Intelligence on the S&P Capital IQ Pro platform.


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