May 07, 2020

PPP Rules Require More Proof of Need and Necessity

Borrowers who have applied and received funding under the CARES Act through the Paycheck Protection Program should ensure to justify the need and necessity of their loan.  Loans over $2 million will be reviewed, and even those under that threshold could be at risk.  A false certification can lead to repayment of the loan and civil or criminal liability. To avoid these penalties, the borrower must document their eligibility and necessity for the loan.  If a borrower determines ineligibility or if the loan was not necessary, the loan must be repaid by May 14.