Businesses with Paycheck Protection Program loans have used PPP loan
funds despite the lack of clear guidance on several aspects of the program. In an article by Juan Vasquez, Jr., Jaime Vasquez, and Victor Viser in Today's CPA July/August issue, they discuss three areas of potential review or audit by lenders, the SBA and/or the IRS.
Businesses must be ready to defend the good-faith certification made
when they applied for their PPP loans and potentially when they signed their promissory notes. The certification states, “that the uncertainty of current economic conditions makes necessary the loan request to support the ongoing operations of the eligible recipient.”
To read the article, click on this link - https://www.tscpa.org/docs/default-source/communications/2020-today's-cpa/july-august-2020/audit-of-client's-ppp-loan.pdf?sfvrsn=40fadcb1_4