The U.S. Department of Treasury and Small Business Administration have promised the government will audit all recipients of Paycheck Protection Program (PPP) loans over $2 million who seek loan forgiveness.
Clients who fail audits jeopardize all or part of their loan forgiveness, and worse, might face false claim prosecutions by the U.S. Department of Justice.
PPP loan recipients who know an audit is on the horizon can offset some of the stress by preparing for it now, assessing risks and documenting the analysis to support certifications. These practical tips can help borrowers withstand the scrutiny of PPP audits and investigations.