Are You Prepared for a PPP Loan Audit?
Keeping records related to the PPP funding is two-pronged. First, the organization had to submit the application and supporting records for the PPP application. Second, records must be maintained to prove how those accepted funds were spent to sustain the business or the purpose of the funding.
The SBA has the right to ask for access to the business records, and an organization must ensure it maintains these supporting records, for a specific period of time. It is also important that organizations keep their business records in compliance with all Federal and State statutes. Business advisors are warning that any organization that received over $2 million in PPP funding, should anticipate being audited. Therefore, if you received any PPP funding, it is reasonable for you to anticipate an audit as well. Have a plan on how the organization will ensure it has the necessary records, should an audit or investigation arise. That plan should include the following seven points:
- Know the purpose of the loan and how the funds are spent.
- Consider engaging a Certified Records Manager.
- Capture the records.
- Use metadata to track the records.
- Anticipate an audit.
- Know the retention requirements.
- Have a destruction process.
To learn more, about these seven points and receive the PPP Records Retention Guide, see the full article at: https://www.crmig.com/ppp-loan-audits-are-you-prepared/
By Cheryl Banke, MLIS, CRM
CEO & Founder, CRMIG
Cheryl Banke serves as CEO & Founder of CRMIG, which is a records management and information governance consulting company located in the Chicagoland area. She is a Certified Records Manager, Paralegal, and Librarian with over 25 years of records management experience. As a consultant, Cheryl assists organizations with their increasingly complex and demanding regulatory and technological challenges. Cheryl has partnered with clients in the health care industries, union organizations, manufacturing firms, financial institutions, various services industries, and non-profits.
Are You Prepared for a PPP Loan Audit?
Are You Prepared for a PPP Loan Audit? Keeping records related to the PPP funding is two-pronged. First, the organization had to submit the application and supporting records for the PPP application. Second, records must be maintained to prove how those accepted funds were spent to sustain the business or the purpose of the funding.…
Rebuilding Starts Now
REGISTER Rebuilding Starts Now – Register Today! Please translate this page to the language of your choice. Supporters Fifth Third Bank Saul Ewing Arnstein Lehr Inland Bank Ntiva UPS Daily Herald Tandem HR Interprenet Signature Bank Lexitas Empower Korey Richardson Open One Solutions Freeborn and Peters
PANDEMIC MAKES STUDENT DEBT RELIEF CRUCIAL
Pandemic Makes Student Debt Relief Crucial Over 45 million Americans collectively owe an approximate $1.6 trillion in student loans. This exorbitant debt stifles our economy and impedes the mobility of young Americans who thought going to college would provide financial security. The economic impact of the pandemic has put Americans further into debt and has…
