According to a post on the AICPA Government Audit Quality Center (GAQC), the following guidance has been issued:
In response to the COVID-19 pandemic, SBA PPP loans, administered under the 7(a) guaranty loan program, are being provided through local financial institutions. While these loans have been made primarily to for-profit entities, some not-for-profit (NFPs) have also received PPP loans. One of the most common questions we have received is whether SBA PPP loans obtained by NFPs are subject to the Uniform Guidance single audit requirements. Based on recent discussions with SBA staff, the GAQC has been informed that PPP loans made to NFPs will not be subject to a single audit.
On the other hand, SBA informed the GAQC that loans made to NFPs under the Economic Injury Disaster Loan (EIDL) program are considered a direct loan program disbursed from SBA to loan recipients. Therefore, these loans are considered federal financial assistance and are subject to the Uniform Guidance single audit requirements.
Read the entire alert here.