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No. The PPP loans work the same way as other SBA loans. That is, the bank (lender) provides private money to the borrower (the quasi-public entity) with the Federal government acting as a guarantor of the loan. Even if a quasi-public entity meets the requirements to have the loan forgiven, the Federal government repays the bank. Therefore, the loan funds, unless co-mingled with public funds, remain private funds even if the loan becomes forgivable under the terms of the Act.
As private funds, these funds should be excluded in determining the quasi-public entity’s required level of financial reporting under the Audit Law. See,Q.33. in Legal’s COVID-19 Legal Guidance FAQ.
Louisiana Legislative Auditor website: 08/12/2025 02:29:12 PM
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