Largo, FL—If an individual lied on their Payroll Protection Program (PPP) loan application in order to receive funds from the government, they could face serious consequences for their actions. The U.S. Small Business Administration (SBA) issued billions in PPP loans to businesses and self-employed individuals who could prove they qualified for the loan and needed the assistance and ended the program on May 31, 2021.

 

What are some examples of PPP fraud?

 

  1. An individual posed as a small business in order to receive a PPP loan.

If an individual didn’t already have an established business but indicated on their application that they did, this is a form of fraud.

 

  1. An individual inflates their profits in order to receive more from a PPP lender.

PPP loan amounts are based on how much income a business or self-employed individual earned in 2020. The more income a business records on their application, the more money they are likely to receive. If an individual inflated their profits in order to receive more funding and got caught, they will likely be charged with PPP loan fraud.

 

  1. An individual spends their PPP loan on items that have not been approved for PPP use.

Individuals who apply for and receive a PPP loan are required to use the funds for certain expenses such as paying their rent and/or utilities. It cannot be used to make lavish purchases or to buy things an individual simply “wants.”

 

Consequences of Lying on a PPP Loan Application

 

Whether an individual applied themselves or hired another party to complete the application process for them, if inaccurate information was recorded on a PPP loan application in order to increase the chances of a person receiving funding, an individual could face one or more criminal charges for their actions.

In the event an individual is caught using their PPP loan on things aside from those related to their businessor provided their lender with false information to secure a loan, the crimes with which they will be charged with depend on the circumstances surrounding their actions. In the event an individual is charged with providing false statements to acquire a loan, they could be shed by a fine of up to $5,000 and/or by having to serve up to two years in prison.1

 

Trevena | James, Attorneys At Law with Criminal Charges Related to PPP Loan Fraud

 

If an individual in Largo, FL has been charged with PPP loan fraud or is worried they may have committed the crime, they can contact Trevena | James, Attorneys At Law to discuss their issue with a Largo criminal defense attorney. The Largo, FL criminal defense attorneys at Trevena | James, Attorneys At Law are qualified to help with various types of criminal cases, including those involving PPP loan fraud.

  

With its office based in Largo Florida, Trevena | James, Attorneys At Law primarily practices in Pinellas, Hillsborough, and Pasco County, and throughout the state of Florida.

 

Trevena | James, Attorneys At Law is located at:

 

801 W Bay Drive, Suite 509

Largo, FL 33770

Phone: 727-581-5813

Website: www.trevenajames.com

 

Source:

  1. https://www.law.cornell.edu/uscode/text/15/645
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