The Paycheck Protection Program offers forgivable loans that businesses can use to cover the cost of payroll and other expenses. Borrowers must certify that their entities need the money due to economic uncertainty.
The Treasury Department and the Small Business Administration now say that businesses borrowing less than $2 million are considered to have made the certification in good faith. They won’t be subject to additional scrutiny. Got a loan and thinking of returning the money? Treasury and SBA are giving you more time to return the funds: May 18.Business owners who borrowed less than $2 million from the Paycheck Protection Program can breathe a little easier: They likely won't face an audit from federal authorities.
The PPP — a forgivable loan program that allows small businesses to cover up to eight weeks of payroll costs, mortgage interest and other expenses — was refilled to the tune of $310 billion on April 27 to help employers keep workers on board. Businesses applying for the lifeline needed to certify in good faith that "current economic uncertainty" made the request necessary.