According to guidance released by the SBA regarding PPP loans, the SBA will assume that any business who received a PPP loan of less than $2 million requested it in good faith and will not subject it to review. PPP loans in excess of $2 million will still be subject to review by the SBA for compliance with program requirements.

We at BRSW recommend that our clients who received a PPP loan amount write up a memo stating why the loan was requested in good faith, was “necessary” and fulfills the SBA requirement that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.

Read more about this PPP loan safe harbor from the AICPA here.