PAYCHECK PROTECTION PROGRAM FRAUD BECOMES A GROWING CONCERN
Many business owners are hoping for more government relief in 2021 due to the ongoing coronavirus pandemic and resulting economic downturn. However, the Small Business Administration is concerned about potential fraud in the second round of the Paycheck Protection Program (PPP) loans. Last year, the SBA reports that 57,000 potentially ineligible borrowers received $3.6 billion from the PPP program last year.
Government bringing charges against business owners
Hundreds of business owners now face federal fraud charges for receiving Paycheck Protection loans. The SBA is concerned PPP fraud may become a bigger problem in the second round of the government program since the process of applying for PPP loans has become more accessible. The government is determined to crack down on businesses that don’t use their PPP funds to sustain employee wages.
Federal officials want to set an example, which may lead to more prosecutions of those who may have committed PPP fraud. The government also wants to deter other businesses from committing fraud through this program.
When facing a fraud investigation or charges
If you receive notice your business is facing fraud charges or a fraud investigation related to PPP loans, you need to consult with an experienced federal white-collar criminal defense attorney as soon as possible. You may have unintentionally violated PPP rules.
With an attorney’s help, you can gather evidence to show how your business used PPP funds. Your attorney also can help negotiate a resolution to this matter.
You don’t want to jeopardize your business when facing fraud a PPP investigation or federal charges. Working closely with a defense attorney can help you reach the best outcome possible and keep you and your business from suffering further.