Are You Prepared for a PPP Loan Audit?
Keeping records related to the PPP funding is two-pronged. First, the organization had to submit the application and supporting records for the PPP application. Second, records must be maintained to prove how those accepted funds were spent to sustain the business or the purpose of the funding.
The SBA has the right to ask for access to the business records, and an organization must ensure it maintains these supporting records, for a specific period of time. It is also important that organizations keep their business records in compliance with all Federal and State statutes. Business advisors are warning that any organization that received over $2 million in PPP funding, should anticipate being audited. Therefore, if you received any PPP funding, it is reasonable for you to anticipate an audit as well. Have a plan on how the organization will ensure it has the necessary records, should an audit or investigation arise. That plan should include the following seven points:
- Know the purpose of the loan and how the funds are spent.
- Consider engaging a Certified Records Manager.
- Capture the records.
- Use metadata to track the records.
- Anticipate an audit.
- Know the retention requirements.
- Have a destruction process.
To learn more, about these seven points and receive the PPP Records Retention Guide, see the full article at: https://www.crmig.com/ppp-loan-audits-are-you-prepared/
By Cheryl Banke, MLIS, CRM
CEO & Founder, CRMIG
Cheryl Banke serves as CEO & Founder of CRMIG, which is a records management and information governance consulting company located in the Chicagoland area. She is a Certified Records Manager, Paralegal, and Librarian with over 25 years of records management experience. As a consultant, Cheryl assists organizations with their increasingly complex and demanding regulatory and technological challenges. Cheryl has partnered with clients in the health care industries, union organizations, manufacturing firms, financial institutions, various services industries, and non-profits.
Please translate this page to the language of your choice.
President Biden Signs PPP Extention Act Attention Small Business Owners: President Biden just signed the PPP Extension Act of 2021 which extends the Paycheck Protection Program an additional two months until May 31st. The Act also provides an additional 30-days for the SBA to process pending applications. Please translate this page to the language of your choice.…
Illinois Small Business Advocates Call For Funding and an Improved Business Interruption Grant Program Illinois small businesses are fighting to recover from the pandemic. However, the Department of Commerce and Economic Opportunity reports that out of the 40,000 businesses that applied for a Business Interruption Grant, only about 9,000 received funding. Business owners hanging on…
Black And African American Owned Businesses Should Receive Their Fair Share Of State Contracts Illinois has failed many Black and African American owned small businesses because they have been unable to procure their fair share of state contracts or receive a fair share of the revenue associated with state contracts. Indeed, the failure of Black…