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Austin EIDL and PPP Loan Fraud Lawyers

August 19, 2022 PPP Loan Fraud Lawyers

The Paycheck Protection Program (PPP) is a federal loan program designed to help small businesses keep their workers on the payroll during the COVID-19 pandemic. The PPP offers loans of up to $10 million, with interest rates of 1%, and terms of up to 10 years, to small businesses that maintain their payroll during the crisis. The loan forgiven if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.

The PPP was created by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which was signed into law on March 27, 2020. The program is administered by the Small Business Administration (SBA).

As of June 30, 2020, there have been 4.9 million loans totaling more than $520 billion approved under the PPP.

The PPP has been criticized for its lack of transparency, as the SBA has not released data on who has received loans. Additionally, some large corporations have received loans despite having other sources of funding, leading to claims that the program is benefiting well-connected businesses rather than truly small businesses.

Despite these criticisms, the PPP has been credited with helping to keep millions of small businesses afloat during the pandemic.

If you’re a small business owner who is struggling to keep your business afloat during the COVID-19 pandemic, the Paycheck Protection Program may be able to help.

For more information on the program, visit the Small Business Administration’s website at www.sba.gov/ppp.

Austin PPP Loan Fraud Lawyers

Fraudulent claims can be made against you for PPP loan forgiveness using various types of fraud. Some examples include:

Borrower certification fraud – This is when a borrower lies about their eligibility for the PPP loan under the law.

– This is when a borrower lies about their eligibility for the PPP loan under the law. Application fraud – This is when you lie on your application or make false statements to get more money than you are entitled to receive.

– This is when you lie on your application or make false statements to get more money than you are entitled to receive. Forgiveness fraud – This occurs where someone lies about how they spent their PPP loan funds and requests forgiveness for expenses that were not actually paid with those funds, or made in order to keep employees employed who were never actually employed by them.

These types of fraud can be prosecuted as federal crimes under various statutes, such as 18 USC 1001 (false statements), 20 USC 1097 (embezzlement), and 18 USC 1341 (mail/wire fraud). If convicted, these crimes carry potential penalties of up to 5 years in prison, fines of up to $250,000 ($500,000 if an organization) plus restitution and costs of prosecution. These charges could also result in civil liabilities under laws like False Claims Act and Fair Debt Collection Practices Act which carry damages ranging from double damages plus attorneys’ fees and costs all the way up

According to the Federal Trade Commission, PPP fraud is a type of loan fraud that occurs when someone uses false information to apply for a Paycheck Protection Program (PPP) loan. This can include using false information about your business, such as its size or number of employees, in order to qualify for a larger loan amount. Additionally, scammers may use stolen personal information to apply for loans in your name.

If you have been the victim of PPP fraud, you should report it to the FTC and your local law enforcement agency. You can also file a complaint with the Consumer Financial Protection Bureau.

The best way to avoid PPP fraud is to be cautious when applying for a loan. Be sure to only provide accurate information about your business, and do not give out your personal information to anyone you do not know. If you are unsure about a loan offer, you can check with the Small Business Administration or your local chamber of commerce to see if it is legitimate.

If you have already applied for a PPP loan, be sure to keep an eye on your bank account and credit report for any unusual activity. If you see anything that looks suspicious, report it to your bank and the relevant authorities right away.

By taking these precautions, you can help protect yourself from PPP fraud and other types of loan fraud.

EIDL Program

The Economic Injury Disaster Loan (EIDL) program is a federal disaster loan program that provides low-interest loans to small businesses and non-profit organizations that have suffered substantial economic injury as a result of a declared disaster.

The EIDL program is administered by the U.S. Small Business Administration (SBA) and provides long-term, low-interest working capital loans to small businesses and non-profit organizations to help them recover from the economic injury caused by a declared disaster.

EIDLs are available in amounts up to $2 million, with interest rates of 4% for small businesses and 2.75% for non-profits, and terms up to 30 years. Loans may be used to pay fixed debts, payroll, accounts payable, and other bills that cannot be paid because of the disaster’s impact.

To be eligible for an EIDL, applicants must have suffered substantial economic injury as a result of the declared disaster, be unable to obtain credit elsewhere, and be located in a disaster area designated by the president. Businesses or non-profits of any size may apply for an EIDL.

The SBA offers disaster assistance in the form of low-interest loans to businesses and homeowners in declared disaster areas.

EIDLs are just one type of disaster assistance available from the SBA. Other types of assistance include:

  • Disaster Grants: grants to cover business expenses that cannot be covered by insurance or other means, such as payroll or inventory;
  • SBA Economic Injury Loans: low-interest working capital loans to help small businesses and non-profits recover from declared disasters; and
  • SBA Physical Disaster Loans: loans to repair or replace real estate, equipment, and machinery damaged or destroyed in a declared disaster.
  • The SBA also offers counseling, training, and other resources to help small businesses and non-profits prepare for and recover from declared disasters.

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