Does anyone have advice on how to spot PPP loans as revenue?

searcher profile

September 12, 2023

by a searcher from University of Denver - Daniels College of Business in Denver, CO, USA

Hello all - when reviewing a CIM with an advisor, it was suggested I be on the lookout for owners having booked PPP loans as income and double check companies against a database like propublica or SBA.gov (https://projects.propublica.org/coronavirus/bailouts/)

Has anyone come across this or have any advice on the matter?

thanks in advance.

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commentor profile
Reply by a searcher
from The University of Chicago in San Antonio, TX, USA
https://www.federalpay.org/paycheck-protection-program/ is a great resource! Sometimes - even if you ask - you won't find it. And not because they're trying to be dishonest or deceitful - folks come/go, folks book things different ways, etc. It may take a little digging by you AND the Seller ... I agree with ^redacted‌. Would be odd not to turn up something!
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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
I agree with Darrell. I usually see it on the financials as PPP or "other " other. If you see a large "Other" income line item, it is likely a PPP loan. One other way to check is with the tax return. Because it was non-taxable, I have yet to see it included on the tax return in revenues or net income. There is usually an M-1 adjustment showing the difference from books to tax returns that removes the PPP income. I hope this helps.
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