On Aug. 23, SBA extended retention period to 10 years to fight fraud.
SBA published interim final rule, Business loan program temporary changes; payment protection program (PPP) - extension of lender records retention requirements.
Lengthen required record retention for lenders that made loans under PPP to 10 years.
Aims to ensure records are available to law enforcement while they continue to investigate and prosecute PPP fraud during expanded 10-year statute of limitations.
Expanded 10-year statute of limitations authorized by Harmonization act,#144641.
Interim Final Rule
Interim final rule harmonizes PPP lender records retention with subsequent legislation.
With subsequent legislation extending the statute of limitations for criminal charges and civil enforcement actions for alleged PPP borrower fraud to ten years after offense.
Applicable to all PPP lender loan records, including applications that were withdrawn, approved, denied or cancelled, loans with outstanding balance, forgiven, in repayment.
Also, loans that have been paid in full by the borrower, as of effective date of the rule.
Extended all PPP lender record retention requirements under 13 CFR 120 to 10 years.
Effectiveness
Provisions of interim final rule effective Aug. 22, 2024; comments due Sep. 23, 2024.
