News & Analysis as of

Audits Small Business Administration Coronavirus/COVID-19

Husch Blackwell LLP

BOLO: Cannabis PPP Loan Audits

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In April, I wrote about the Docklight case in Washington State. That case involved a qui tam action pursuant to the False Claims Act in which Docklight, a cannabis ancillary company, settled with the Department of Justice for...more

Benesch

Engaging in Activities that Violate Federal Law? DOJ Scrutiny of PPP Loan Recipients Turns to Ancillary Companies Supporting the...

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Since its inception, the cannabis industry has always existed alongside significant regulatory and compliance challenges. These largely stem from the fact that the manufacture, distribution and possession of marijuana remains...more

Husch Blackwell LLP

PPP Loan Audits Could Affect Millions of Borrowers

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In March 2020 during the height of the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law establishing, among other things, the Payment Protection Program (PPP) administered...more

McDermott Will & Emery

The PPP Turns Four: Lessons Learned and What Lies Ahead

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Four years ago this month, lenders began dispersing Paycheck Protection Program (PPP) loans to small businesses in what would become the largest Small Business Administration (SBA) lending program in history. The SBA approved...more

Venable LLP

Navigating PPP Loan Forgiveness Audits

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The Small Business Administration (SBA) is auditing Paycheck Protection Program (PPP) loan forgiveness applications for both First Draw and Second Draw PPP loans, including for nonprofit organizations that received loans. As...more

PilieroMazza PLLC

PPP Loan Fall-Out: Expect More Audits and Investigations

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Unfortunately, the PPP Loan fall-out is far from over.  As we noted in the last blog on PPP issues, we are seeing a number of PPP Forgiveness denials for a number of different reasons, and, along with that, we are seeing the...more

Cozen O'Connor

In extremis — PPP Money Is Not “Free” So Applicants & Recipients Need to Beware

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As most of the population is aware, to try and preserve the economy and businesses viable during the COVID-19 pandemic, congress passed the CARES Act. That bill included the Payroll Protection Program (PPP), in which small...more

Bowditch & Dewey

Five Things to Know About PPP Loan Audits

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The Paycheck Protection Program was one of the more innovative and written-about of the CARES Act’s fiscal stimulus packages. The U.S. Treasury and Small Business Administration (SBA) leveraged the private banking sector to...more

Blank Rome LLP

Paycheck Protection Program Audits Are Upon Us—Borrowers Prepare!

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In our last post on this topic, we touched on how the acceptance, use, and forgiveness of Paycheck Protection Program (“PPP”) loans can be viewed in the context of a Defense Contract Audit Agency (“DCAA”) audit. This post...more

McDermott Will & Emery

[Webinar] PPP - One Year Later - April 8th, 2:00 pm EST

It has now been one full year since the Small Business Administration launched its Paycheck Protection Program (PPP). As we take a look back and begin to prepare for the next steps that organizations must take now to insulate...more

Chambliss, Bahner & Stophel, P.C.

What You Need to Know About Latest Paycheck Protection Program Regulations and Second Draw Loans

As we have reported, the stimulus bill passed by Congress and signed by President Trump late last year enacted major changes to the popular Paycheck Protection Program (PPP). And this week, consistent with that law’s 10-day...more

Harris Beach PLLC

PPP Loan Forgiveness Applications and Increase in Federal Investigations Pose Risks for Small Businesses

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A significant part of the March 2020 CARES Act, the federal government’s Paycheck Protection Program (PPP) provided a lifeline for hundreds of thousands of small businesses across the nation, helping struggling owners pay...more

Parker Poe Adams & Bernstein LLP

SBA Reveals Questionnaires Aimed at Auditing Necessity of Large Paycheck Protection Program Loans

In a series of FAQs issued last spring, the Small Business Administration (SBA) made clear that it would review the certification made by Paycheck Protection Program (PPP) borrowers of $2 million or more that “[c]urrent...more

Benesch

The SBA Releases Two PPP Liquidity Questionnaires

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As you may remember from a previous bulletin, the SBA has stated that it will audit all PPP borrowers, who together with a borrower’s “Affiliates” (as determined pursuant to SBA regulations), received PPP loans in excess of...more

Foley & Lardner LLP

COVID-19: HHS Publishes Long-awaited Reporting Requirements for Provider Relief Fund Recipients

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On September 19, 2020, the Department of Health and Human Services (HHS) released guidance establishing the reporting requirements for health care providers that received Provider Relief Fund (PRF) payments. These reporting...more

Pillsbury Winthrop Shaw Pittman LLP

COVID-19 Relief: Paycheck Protection Program and Issues in M&A Transactions

Potential merger partners of and investors in businesses that have received loans under the Paycheck Protection Program should be aware of particular risks and other diligence considerations. Any potential merger partner or...more

Fox Rothschild LLP

Will You Be Ready For A Paycheck Protection Program Audit?

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The Small Business Administration (SBA) has opened the portal for applications for forgiveness of Paycheck Protection Program (PPP) loans established under the Coronavirus Aid, Relief and Economic Security Act (CARES Act)....more

Burr & Forman

PPP/CARES Act Audit, Investigations and Defense Response Kit

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The PPP and CARES Act Audit, Investigations and Defense Team has developed a Response Kit that includes the PPP and CARES Act Audit, Investigations and Defense overview; FAQ’s; Important Documents list; and Burr’s PPP and...more

King & Spalding

Insurers Now Offering PPP Loan Insurance

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As additional and conflicting guidance on Paycheck Protection Program (PPP) loans is released by the Small Business Administration (SBA), uncertainty about eligibility and loan forgiveness has persisted. In connection with...more

Burr & Forman

SBA Releases List of PPP Borrowers – Which Businesses Are Now Audit Targets?

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The SBA and the United States Treasury have now released a list of over 600,000 PPP loan borrowers who received PPP loans of $150,000 or more. This list includes the name of the borrowers, the general loan range of the PPP...more

ArentFox Schiff

The Risks Are Real: What We Know and Can Predict About CARES Act Financial Fraud Enforcement

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While gearing up to get trillions of dollars into the economy, the government was also setting in place the mechanism to investigate and prosecute fraud related to these programs. The CARES Act was signed into law on March...more

ArentFox Schiff

Investigations Newsletter: Engineer Charged With Defrauding COVID-Relief Program

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Engineer Charged With Defrauding COVID-Relief Program - Texas-based engineer Shashank Rai was charged with defrauding the Coronavirus Aid, Relief, and Economic Security (CARES) Act SBA Paycheck Protection Program (PPP) by...more

Fisher Phillips

Businesses That Obtained PPP Loans Under $2M Will Not Be Audited (UPDATED)

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One long week after the U.S. Treasury announced that it was extending the Paycheck Protection Program Loan “safe harbor” deadline to May 14, the U.S. Treasury announced this morning that borrowers whose loan amount (combined...more

ArentFox Schiff

Are You Prepared? Audits & Investigations Under the Paycheck Protection Program

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Congress created the Paycheck Protection Program (PPP), part of the CARES Act and administered by the Small Business Administration (SBA) and Treasury Department, to provide relief to small businesses in dire need of...more

Tarter Krinsky & Drogin LLP

U.S. Department Of Treasury Issues Guidance On PPP Loan Audits

On April 29, 2020, the U.S. Department of Treasury (Treasury) issued an updated FAQ (the Updated Guidance). Notably, Q39 confirms Treasury Secretary Steven Mnuchin’s public statement that the SBA will audit all Paycheck...more

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