[co-author: Craig Stetson ]
In our last post on this topic, we touched on how the acceptance, use, and forgiveness of Paycheck Protection Program (“PPP”) loans can be viewed in the context of a Defense Contract Audit Agency (“DCAA”) audit. This post focuses on audits and investigations involving PPP loans. Close scrutiny of PPP loans is not a prediction; it is reality. The Small Business Administration (“SBA”) has announced it will audit all PPP loans in excess of two million dollars following a lender’s submission of a borrower’s loan forgiveness application, and it reserves the right to “spot check” any PPP loan of a lesser amount at its discretion. The Department of Justice has already charged multiple individuals with PPP fraud. And this is just the beginning of what many think will be a tidal wave of enforcement activity involving PPP loans.
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MYRTLE BEACH, S.C., April 20, 2021 /PRNewswire/ South Atlantic Bancshares, Inc. ( South Atlantic or the Company ) (OTCQX: SABK), parent of South Atlantic Bank (the Bank ), reported consolidated net income of $3.5 million, or $0.46 per diluted common share, for the three months ended March 31, 2021, an increase of $1.7 million, or $0.22 per diluted common share, compared to the fourth quarter of 2020. This was a significant quarter for our Company as we reached over $1 billion in total assets, achieved record earnings, and opened our 11
th branch location in Hilton Head Island, South Carolina, said K. Wayne Wicker, Chairman and Chief Executive Officer of South Atlantic. As in prior quarters, our bankers continue to assist local businesses through the Small Business Administration s (the SBA ) Paycheck Protection Program (the PPP ), which continued to drive growth in assets, earnings, and customers in the first quarter of 2021. We ha
The Coronavirus Aid, Relief, and Economic Security Act (as amended and modified, the “
CARES Act”) was enacted to provide immediate assistance to individuals, families, and businesses affected by the COVID-19 emergency. Among other provisions, the CARES Act allowed Congress to authorize the Small Business Administration (“
SBA”) to temporarily guarantee forgivable loans under a new 7(a) loan program titled the Paycheck Protection Program (“
PPP”).
On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the “
Economic Aid Act”) was enacted and authorized additional funds for new First Draw PPP Loans and for Second Draw PPP Loans. On January 6, 2021, the SBA and the Department of Treasury released an Interim Final Rule called “Business Loan Program Temporary Changes; Paycheck Protection Program as Amended by Economic Aid Act.” That rule restates existing regulatory provisions into a single regulation on borrower eligibil
On January 6, 2021, the Small Business Administration (the “
SBA”) and the Department of Treasury released an Interim Final Rule called “Business Loan Program Temporary Changes; Paycheck Protection Second Draw Loans” (“
Second Draw Rules”). These rules announced the implementation of section 311 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the “
Economic Aid Act”). The SBA also released an Interim Final Rule called “Business Loan Program Temporary Changes; Paycheck Protection Program as Amended by Economic Aid Act” (“
Consolidated First Draw PPP IFR”). That rule restates existing regulatory provisions into a single regulation on borrower eligibility, lender eligibility, and loan application or origination requirement issues for new First Draw PPP Loans, as well as general rules relating to First Draw PPP Loan increases and loan forgiveness. Both rules take effect immediately. For more information on the Consolidated First D