Skip to main content

News & Updates

Q: “Would you recommend that we prepare a document or memo that substantiates the certifications we made in our PPP loan application?”

Date

May 14, 2020

Read Time

1 minute

Share


Answered by Eileen Sethna

Answer: Yes, we do. Coupled with the guidance issued in FAQ#46, we recommend that if you received a PPP loan over $2M, that you put together a summary of the bases for your certification.

For instance:

  • consider your top customers, are their respective industries struggling (like large retailers filing bankruptcies); 
  • are your receivables aging;
  • have you been asked to extend payment terms;
  • might any extension of payment terms compromise any potential borrowing base credit facilities you have;
  • were your retail tenants sheltered in place and have no way to operate;
  • what are the industry trends for your retail clients?

Work to create a narrative as to how and why “economic uncertainty” made your loan request necessary to support your ongoing operations. If and when you are audited, you have already prepared for potential certification scrutiny. 


Filed under: Financial Services & Restructuring

May 04, 2022

Five Things Every Business Leader Should do to Protect Themselves from a Cyberattack

Read More

May 04, 2022

Involuntary Bankruptcy Might Not Be the Right Tool for Aggrieved Creditors—What to Consider Before Taking Action

Read More