{"id":4407,"date":"2020-07-08T16:44:02","date_gmt":"2020-07-08T21:44:02","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/business-finances\/are-small-businesses-being-audited-for-compliance-with-ppp-terms.html"},"modified":"2024-06-13T15:52:16","modified_gmt":"2024-06-13T20:52:16","slug":"are-small-businesses-being-audited-for-compliance-with-ppp-terms","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/are-small-businesses-being-audited-for-compliance-with-ppp-terms.html","title":{"rendered":"Could My Small Business Get Audited for a PPP Loan?"},"content":{"rendered":"\n
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Could My Small Business Get Audited for a PPP Loan?<\/h1>\n
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\n By Oni Harton, J.D.<\/a> | Legally reviewed by Amber Sheppard, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Congress enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act<\/a>, which includes the Paycheck Protection Program (PPP), at the height of the pandemic. At the cost of almost $2 trillion<\/a>, it sought to help save workers and businesses from economic hardship.<\/p>\r\n

Pandemic relief fraud investigations are now happening. There has been an uptick in criminal and False Claims Act<\/a> (FCA) investigations related to loan funds borrowed through the PPP program.<\/p>\r\n

This article discusses the SBA’s PPP Loan Program, increased collection efforts for delinquent pandemic relief loans, and how to prepare if audited in connection with a PPP loan or forgiveness.<\/p>\r\n

What Is the Paycheck Protection Program?<\/b><\/h2>\r\n

After COVID-19 caused widespread disruption to businesses across the country, Congress attempted to give some relief by passing the Coronavirus Aid, Relief, and Economic Security (CARES) Act<\/a>, which includes the Paycheck Protection Program.<\/p>\r\n

The PPP is a federal short-term loan program through the Small Business Administration. It encourages employers to keep their employees on the payroll. The SBA loans qualify for PPP loan forgiveness if the borrower meets eligibility requirements.<\/p>\r\n

Business owners can use PPP loan proceeds to cover payroll costs such as:<\/p>\r\n