In a recent joint statement, the Treasury Department and the Small Business Administration (SBA) announced that all businesses who received a Paycheck Protection Program (PPP) loan in excess of $2 million would have the necessity of receiving the loan reviewed. To quote the statement directly:
To further ensure PPP loans are limited to eligible borrowers, the SBA has decided, in consultation with the Department of the Treasury, that it will review all loans in excess of $2 million, in addition to other loans as appropriate, following the lender’s submission of the borrower’s loan forgiveness application. Regulatory guidance implementing this procedure will be forthcoming.
BRSW encourages all businesses who received PPP funds to document the economic uncertainly it faces and the need for liquidity to help it retain employees and bridge the gap until “normal” returns.
Please email your CPA if you have any questions regarding this information.