The U. S. Small Business Administration (SBA) issued a new FAQ to clarify certain rules for the Paycheck Protection Program (PPP), which provides forgivable loans to physician practices to cover operating expenses. Practices are encouraged to review this document.
SBA also announced it will be auditing loans of more than $2 million to ensure compliance with the terms and conditions and to ensure that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”
Questions 31, 39 and 43 of the FAQ relate to this issue.
The California Medical Association (CMA) encourages physicians to carefully document loan expenditures in case they are audited.
For more information on the PPP, see the CMA COVID-19 Financial Toolkit for Medical Practices.