PAYCHECK Protection Program (PPP) Loans Compliance and Audits
Created as the stimulus cornerstone of The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, the Paycheck Protection Program or 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 $15,000,000, and the average net income after Federal income taxes should not be more than $5,000,000. 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 benefit. The PPP is no different.
WHY EXPERIENCE MATTERS TO STAY COMPLIANT WITH THE PAYCHECK POTECTION ACT
At Goldburd McCone our team is adept at navigating your business through the compliance hurdles that you face as PPP recipient. From drafting 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.
Our team of experienced attorneys 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 your business needs. Do not hesitate in calling our Manhattan based tax law firm at 212-235-1817 or complete our email form to get started.