Time Sensitive SBA Clarification On PPP Loans – Companies That Took Loans More Than 2 M Are Going To Be Audited

From Jim Kahrs, Prosperity Plus – This is time sensitive and I wanted to get it out.  The SBA released a clarification of the rules for how PPP Loans over $2 million will be treated.

Companies that took a loan of more than $2 million are going to be audited.  There has been talk of criminal prosecution for business owners that took the loan and were deemed to have not needed it.  This has now changed.

There will still be an audit, however, if the SBA deems that the loan was not necessary the only penalty will be the need to repay the money.  I’ve talked with companies that were considering returning the money by tomorrow’s deadline to qualify for Safe Harbor.  They may now want to rethink that.

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