Worried About A PPP Audit? How To Prepare For The Process

Posted on: 5 October 2020

If you took out a PPP loan for your small business, you might have heard about the recent call for government audits. The US government has begun auditing many of the businesses that received funds through the Paycheck Protection Program. The audits come as a result of reported fraud associated with the loan program. If you're worried that your business will be targeted for an audit, now's the time to prepare. There are things you can do to navigate the audit process. Being well-prepared for the loan audit can help you to avoid problems. Here are three steps you need to take to prepare for a possible PPP audit. 

Seek Legal Advice

If you're worried that your business will be audited as a result of your participation in the PPP loan program, the first thing you need to do is seek legal advice. During the audit, the government will be examining your need for the loan you requested. They'll also be looking to make sure that you followed the certification process and that no mistakes were made. An attorney can look through your documentation to make sure that everything is in order for your audit. They can also help you to get your paperwork together. That way, you're prepared should you receive an audit notification.

Keep Track of Loan Use

If you took out a PPP loan from the US government, it's crucial that you track the use of those funds. The US government established specific rules for the use of PPP funds. Some of the authorized uses included employee wages, and employee health insurance premiums. In order to qualify for the forgiveness of those loan proceeds, you need to be able to prove that the money was used properly. If your business is audited, you'll also be required to show documentation of how your loan money was spent. Because of that, it's important that you keep track of each payment you made with the PPP loan proceeds. 

Detail Employee Changes

If you qualified for the PPP loan based on the number of employees you had at your place of business, it's important that you provide details regarding any changes. During the audit, your employee records will be examined. You'll need to provide documentation for any employees who stopped working for you after the loan was disbursed. 

Don't let the threat of a PPP audit cause you undue stress. Use the tips provided here to help get you prepared for the process and talk to a PPP audit attorney for help. 


social security disability denial? now what?

We all pay into our Social Security Disability Insurance each year. We see that large sum come out of each and every paycheck that we earn. We count on that money to be used to protect us from financial ruins if we were to become injured or ill enough to prevent us from working. Unfortunately, there are times in which a perfectly legal and eligible claim is denied. At this point, we are required to go through the lengthy and confusing appeals process. A Social Security Disability Lawyer can help you get through this, but so can some solid information. On this site you will find a plethora of information provided to assist you through a difficult time.

Latest Posts