Released: Apr 23, 2024
by Gabrielle Pickard-Whitehead
In Small Company News
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There is increasing issue amongst the receivers of Payment Protection Program (PPP) Loans about prospective audits. This follows a price quote by the Small Business Association’s (SBA) Office of Inspector General that as much as one-third of PPP Loans have actually revealed indications of prospective scams.
According to the Interim Final Rule, the SBA has permission to investigate the compliance of all PPP Loan customers’ eligibility and other requirements advanced at the time of a customer’s application. Audits include an examination into whether a service properly determined its loan eligibility or not and if the funds were utilized in accordance with the Coronavirus Aid, Relief and Economic Security (CARES) Act.
The SBA administered PPP Loans throughout the COVID-19 pandemic when the CARES Act was signed into law. They were utilized by small companies that were having a hard time economically throughout the pandemic. Over 11.5 million PPP Loans were given to countless debtors, some corresponding to the m