If you applied for PPP loan forgiveness and were denied, don’t despair just yet. The U.S. Small Business Administration and the Treasury Department have issued an interim final rule on how businesses who have been turned down for forgiveness of their Paycheck Protection Program (PPP) loans can appeal the decision, but the process is a formal and legal one, and you’ll need to consult with an attorney.
In a formal appeal before the SBA, representation of the borrower is limited to attorneys. That is, the special status granted to CPAs to practice before the IRS does not carry over to practice before the Small Business Administration. So, while your BGW team can help in determining if an appeal is a worthy endeavor, prepare your documents, and assist in selecting an attorney who might be best suited for you, we cannot represent you in this matter.
The interim final rule takes effect immediately. Businesses that appeal the loan forgiveness denial will need to have a copy of the loan review decision that’s being appealed, a statement about why the decision was erroneous, the relief that’s being sought, and signed copies of payroll tax filings filed with the IRS and the state. They will also need to have various federal tax returns and schedules, such as Form 1040 with Schedules C or F, and individual employee wage reporting and unemployment insurance tax filings actually reported to the relevant state, for the relevant periods of time, if they’re not provided with the PPP Loan Forgiveness Application, or an explanation of why they’re not relevant or available.
Please reach out to us for more information.