Handling Compliance And Audits For PPP Loans
Created as the stimulus cornerstone of The Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Paycheck Protection Program (PPP) is a loan program designed to help struggling small businesses weather the financial storm created by the COVID-19 pandemic.
Eligible small businesses must have less than 500 employees; the maximum net worth of the business should not be more than $15 million; and the average net income after federal income taxes should not be more than $5 million. Using the funds for proper payroll costs and some non-payroll costs can even merit a business being granted loan forgiveness of the entire balance.
Connected to any government benefit is the requirement for compliance and the burden of possible enforcement or audit by the government with regard to the propriety of a business receiving such benefits. The PPP is no different.
Handling Your EIDL Issues, Including Compliance And Audits
With an Economic Injury Disaster Loan (EIDL), small businesses can receive assistance to prevent or minimize their economic losses during a major downturn. However, compliance is crucial in order to receive an EIDL. We can help you bring your company up to compliance so that you can apply for one of these loans. If you have already received one, we will ensure that you remain in compliance. And if the Small Business Association should audit you, we will advocate for you and make sure the audit goes as smoothly as possible.
Why Experience In Staying Compliant With The Paycheck Protection Program Matters
At Goldburd McCone LLP, our team is adept at navigating your business through the compliance hurdles that you face as a PPP recipient. We handle everything from drafting a historical memorandum detailing your “need” for the loan to coordinating with financial professionals in creating viable models indicating your business’ lack of liquidity but for the PPP loan. We can assist with the ever-changing landscape of compliance requirements that are being issued for the PPP.
We are ready to represent businesses that have been contacted by a government entity for enforcement or audit relating to the PPP. The CARES Act created the Pandemic Response Accountability Committee (PRAC), which will coordinate with various government offices, including the IRS and FBI, to audit and investigate both criminal and civil abuse of PPP funds. Our team has a proven track record of defending clients against government audit and enforcement, and we are well prepared and ready to counsel you through this arduous inquiry.
Contact Us Today To Discuss The Details Of Your Case
Get the advice and guidance that your business needs. Do not hesitate to call our Manhattan-based tax law firm at 212-235-1817 or complete our email form to get started.