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ARTICLE · 27 JANUARY 2021

Are You Ready For Your PPP Loan Audit?

Burr & Forman LLP
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PPP loans received by individuals and businesses under the CARES Act will be audited ("reviewed") by the SBA.

United StatesAccounting and Audit
Erik P. Doerring
Erik P. Doerring

PPP loans received by individuals and businesses under the CARES Act will be audited ("reviewed") by the SBA. The new Economic Aid Act also requires the SBA to submit a forgiveness audit plan within 45 days after enactment and report updates every 30 days thereafter. Additionally, the Economic Aid Act now allocates $50 million for PPP audits and fraud mitigation efforts. PPP loans of $2 million or more will automatically be audited by the SBA. Many PPP loans of less than $2 million will be audited as well.

PPP loan audits are being handled by the SBA. Borrowers will often receive notification of the audit through their lending bank, but SBA is directly notifying PPP borrowers as well. The SBA is receiving support from the Internal Revenue Service and other federal agencies in these audits, which can also involve criminal investigations.

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