Last Updated on: 28th July 2023, 07:21 pm

What Triggers the Small Business Administration to Flag PPP Loans?

If you have applied for a PPP loan, you may wonder what criteria the Small Business Administration (SBA) uses to flag loan applications for review. PPP loans are intended to help small businesses impacted by the COVID-19 pandemic, but there are several reasons why your loan application may be flagged for further review.

One reason why the SBA may flag a PPP loan application is if the business has submitted multiple PPP loan applications to different lenders. Another reason is if the loan application was fraudulent, incomplete, or lacked essential information. The SBA may also flag a loan if it determines that the PPP funds were used for unauthorized purposes or if the business submitted a fraudulent PPP loan forgiveness certification.

If your PPP loan application has been flagged, it is essential to seek the help of a qualified attorney with experience in PPP loan fraud defense. An experienced attorney can help you navigate the PPP loan review process and work to protect your business.

What Happens if You Are Accused of PPP Loan Fraud?

If you are accused of PPP loan fraud, you may face serious consequences, including criminal charges and financial penalties. Under the CARES Act, PPP loan fraud may be prosecuted using pre-existing laws related to bank fraud, wire fraud, mail fraud, tax evasion, identity theft, or computer fraud.

If you intentionally omit information or make false statements when applying for a PPP loan, you could be subject to criminal penalties, including imprisonment for up to 30 years and fines of up to $1 million. Even if you are not the direct beneficiary of the fraudulent PPP loan, you could still face charges of conspiracy or attempted fraud.

If you are under investigation for PPP loan fraud, it is critical to seek the help of an experienced PPP loan fraud defense attorney. Your attorney can help you build a strong defense and work to protect your rights throughout the investigation and legal process.

How Are Flagged PPP Loans Handled?

Once a PPP loan has been flagged, it is up to the investigating agency to determine how to proceed. The type of PPP loan fraud involved will determine the federal agency responsible for the investigation, whether it is wire fraud, bank fraud, or mail fraud.

If the SBA flags your PPP loan, they may request a federal search warrant to begin the investigation. If your PPP loan has been flagged, it is critical to seek legal counsel immediately to protect your rights and guide you through the investigation process.

An experienced PPP loan fraud defense attorney can help you navigate the PPP loan review process, assist you with any legal issues that may arise, and work to protect your business and your rights throughout the legal process.

If your company is facing allegations of PPP loan fraud, it is important to consult with experienced federal defense counsel right away. With stakes as high as they are, companies need to be prepared to defend themselves aggressively against any allegations that could lead to substantial fines, imprisonment, or other forms of legal liability.

Protecting Your Company Against Allegations of PPP Loan Fraud

At Spodek Law Group, our experienced federal defense attorneys have been helping companies and individuals navigate complex federal investigations and prosecutions for decades. If your company is under investigation for PPP loan fraud, we can provide you with a comprehensive defense strategy that takes into account all aspects of your case, from the initial investigation to the final outcome of your case.

We understand the high stakes involved in PPP loan fraud cases, and we will work tirelessly to protect your rights and reputation. We will work with you every step of the way to ensure that you have the best possible legal representation and the best possible outcome for your case.

Don’t wait to protect your company and your future. Contact Spodek Law Group today to schedule a consultation with an experienced PPP loan fraud defense attorney.