PPP Loan Lawyers

The Coronavirus Aid, Relief, and Economic Security (CARES) Act responded to the urgent needs of businesses and their employees. Funds were quickly deployed and depleted as employers scrambled to meet the needs of their employees and protect their businesses. 

The PPP Act is part of the CARES Act and enables employers to retain employees while allowing their businesses to remain afloat. A great deal of criticism was leveled at this act, and it raised many questions regarding the legitimacy of claims and the disbursement of funds. As a result, many PPP loan recipients are facing audits and even charges of PPP loan fraud.

The United States Small Business Administration Paycheck Protection Program (PPP) distributed nearly $800 billion in forgivable loans to more than 10 million businesses in 2020 and 2021.

Now, the Department of Justice and other agencies are aggressively investigating and prosecuting individuals and companies that they suspect of committing fraud on their PPP loan applications. Those found guilty potentially face lengthy prison terms and up to $1 million in fines.

When and where can PPP fraud arise?

Due to the nature and speed of these loans, the potential for fraud or even simple mistakes was broad. Some areas of fraud include:

• Mis-categorizing employees to qualify for loans.
• Applying for and receiving multiple loans.
• Misrepresenting payroll costs.
• Using the funds received for ineligible purposes.
• Using the funds for fraudulent purposes.
• Falsifying eligibility requirements.

What are PPP payroll costs?

It is essential to understand fully what constitutes PPP payroll costs. The PPP loans were offered to help employers stay in business while retaining their employees and showing them their salaries and benefits. PPP payroll costs include the following:

• Employee salaries and wages up to a certain amount.
• Employee health benefits.
• Employee leave benefits (unless these were covered under COVID-19 leave benefits)
• Employer-paid retirement benefits.

Loan Forgiveness Can Be Gained

Will your business qualify for PPP loan forgiveness? In some cases, yes. For example, if 60% of your loan amount was used for PPP payroll costs, you may qualify for loan forgiveness. 

You must consult a lawyer who understanding the complexities of PPP loans to qualify for loan forgiveness and avoid loan fraud charges.

Could Your Company Be Prosecuted for Paycheck Protection Program (PPP) Loan Fraud?

Many businesses are coming under the microscope because of the large amount of money spent on PPP loans and the massive opportunities for fraudulent activities associated with the receiving and disbursement of these funds. Investigators scrutinize even the smallest of errors to uncover potential fraud. 

Even if the investigation reveals errors or slight misrepresentation, they will not hesitate to act punitively. Unfortunately, intent or ignorance is not accepted as a defense. It is vital to have knowledgeable representation to protect yourself and your business.

What Should You Do if You or Your Company is Targeted for PPP Loan Fraud?

The pandemic created global hardships for businesses and individuals worldwide. The American government scrambled to keep small and large businesses afloat during these unprecedented times. PPP loans were given as one solution, but the demand for these funds was so great that many employers had to act fast to help their businesses and employees. 

Now that many of these loans are under scrutiny, employers are concerned that they might be targeted and audited due to these investigations. The critical thing to do is immediately seek qualified representation. This representation must come from legal professionals who thoroughly understand the legalities and nuances of PPP loan fraud.

Speak with a PPP Fraud Defense Lawyer at SKJM Law Firm

Our lawyers are committed to serving clients who are concerned about legal action being taken due to alleged loan fraud. We have the compassion, experience, and knowledge to represent our clients and get results. 

If you or your company is under investigation or suspected of committing PPP fraud, contact SKJM in Houston, TX.

Schaffer Kennedy Johnson has the experience and the resources to defend you against allegations of PPP fraud. Contact SKJM Law Firm for legal consultation: 713-228-8500