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Sept. 24, 2020
When a Paycheck Protection Effort Meant to Save Jobs Doesn’t
Bloomberg Tax
The Paycheck Protection Program (PPP), an aid program to back loans to businesses, offers exemptions that employers can use to let workers go. Lenders, not the government, are responsible for assuring the funds are used correctly, notes Atlanta partner Ann Murray. She’s helped businesses navigate PPP funds during the pandemic. The lenders certify or approve the loan forgiveness, and then the SBA has a period of time to review the lenders’ approval, she said.
The catch is that the SBA said it will “review all loans in excess of $2 million, in addition to other loans as appropriate.” That means countless other loans won’t be automatically reviewed by the government, according to May 15 guidance from the agency.
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