Paycheck Protection Program loans below $2 million typically won’t face audits – Treasury

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The U.S. Treasury Department on Wednesday again provided new guidance for emergency loans meant for small businesses hurt by the coronavirus crisis, with officials saying that Paycheck Protection Program loans of less than $2 million won’t face heightened scrutiny.

“Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith,” said the last page of an updated guidance document posted on the department’s website.

The Treasury Department previously has noted that PPP borrowers had to certify to the Small Business Administration that the current economic uncertainty made their loan request necessary to support ongoing operations. It has said that it’s “unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith.”

Such warnings have led to the return of 61 PPP loans that were made to public companies, according to data as of Wednesday from analytics firm FactSquared. Borrowers face a deadline of this Thursday for giving back their forgivable loans.


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