swgordon wrote:novacpa, seriously? LOL. What a joke.
What to Do if the SBA Finds You Did Not Meet the Necessity Element
Press reports have stated that organizations that cannot demonstrate they needed their PPP loan will not receive loan forgiveness. This would mean that they would simply have a 1% loan for two years.
Alternatively, the SBA could, in theory, conceivably demand immediate repayment if it determined a borrower was not eligible to receive a PPP loan in the first place. Finally, the first interim rule reminded loan applicants that “knowingly” making a false statement to obtain a PPP loan
could result in criminal sanctions, including fines and imprisonment. Given the lack of authoritative guidance in this area, it is hard to imagine how anyone attempting to be compliant could meet the “knowing” standard for criminal sanctions to be realistically imposed.
You should consult your legal counsel regarding your risk that such sanctions could apply to your organization or its officers, or both.
The Burden of Compliance Is On the Borrower, Not the Lender
The PPP loan program is characterized by shifting the burden of compliance from the lender to the borrower. FAQ 31 specifically states that “[l]enders may rely on a borrower’s certification regarding the necessity of the loan request.” Thus, lender approval of the loan is not useful for the purpose of satisfying the good faith certification.