Businesses Who Borrowed Under $2 Million Get 'Safe Harbor' From Audit

Businesses who borrowed less than $2 million from the Paycheck Protection Program will probably not face a federal audit. In the latest update to its frequently asked questions document, the Small Business Administration clarified that if companies borrowed under the $2 million, they will be given “safe harbor” and won’t face any scrutiny from the SBA or the U.S. Treasury Department.

“Given the large volume of PPP loans, this approach will enable SBA to conserve its finite audit resources and focus its reviews on larger loans, where the compliance effort may yield higher returns,” the agency said in the FAQ.

Related: SBA Releases Updated Guidance on Business Loan Program; Possible Fraud Discovered in Small Business Loan Lending Program.

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