Should You Return Your PPP Loan?
You have probably read in the news about the backlash that some public companies have experienced as a result of accepting loans through the Paycheck Protection Program (PPP). As a result of the public outcry, many of the large organizations have chosen to give back the PPP loan funds. What you may not have heard is this: many smaller businesses are also choosing to return their loan money.
Accountants have begun to report that more and more clients are opting not to keep their PPP loan money. This is a result of worry about the repercussions of receiving the money and later discovering that they do not actually qualify for the program.
One of the steps of applying for a PPP loan is performing a self-certification that an entity qualifies for the loan. Down the line, federal authorities will begin the process of reviewing all the self-certifications. If a recipient is unable to demonstrate adequately that they needed the loan, they face repercussions, including the possibility of criminal charges.
In order to avoid penalties associated with accepting a loan for which an entity does not qualify, loan recipients must return their PPP loan funds by May 7, 2020. As a result, many businesses owners who are unsure or nervous about their qualification are choosing to return the loan money for which they applied.
Are you unsure of whether you truly qualify for a PPP loan that you have already received? Reach out to your Scott & Company accounting advisor today in order to examine your options with the help of a professional.