A Texas man was sentenced today to 110 months in prison for his scheme to fraudulently obtain and launder proceeds from more than $1.6 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.29 Nov 2021
What happens if you can't pay back the PPP loan?
In short, bankruptcy may offer a solution for those unable to repay unforgiven PPP loans, and in some cases may also help resolve EIDL loans. However, the borrower should first explore the possibility of forgiveness–the requirements are less stringent than when the program was first created.14 Dec 2021
Will PPP loans be investigated?
Steps to Take if You're Being Accused of PPP Loan Fraud Typically, the Small Business Administration (SBA) begins a PPP loan fraud investigation with an audit. During the audit, the SBA will look at: Whether or not there were lies or inconsistencies in your original application; All loan forgiveness was proper.21 Dec 2021
What will happen to PPP loan frauds?
A person charged with PPP loan fraud may face serious criminal and civil penalties. The penalty depends on the amount of money taken, up to 20 years in prison. Bank Fraud (18 U.S.C. Section 1344) This is similar to wire fraud but involves making false statements to a bank or other financial institution.
Can you go to jail for PPP loan?
Whether a PPP loan fraud case involves thousands, hundreds of thousands, or millions, defendants can receive prison sentences in these cases. If there is evidence of fraud, people can go to jail for a $20,000 PPP loan, just like someone whose PPP loan was $100,000 or $1 million.24 Nov 2021
Can you go to jail for false PPP loan?
Depending on the circumstances, the federal government might charge people accused of defrauding the PPP under the following provisions: 15 U.S.C. § 645: Making a false statement to the SBA. This can result in a fine of up to $5,000 and up to 2 years in prison.
What happens if you don't get forgiven PPP loan?
If you don't apply for loan forgiveness within 10 months after the last day of your covered period, you'll be required to start making payments to your PPP lender at 1 percent interest, which started accruing when the loan was made.20 Jul 2021
Who is Hunter VanPelt?
ATLANTA - Hunter VanPelt has been sentenced to prison for bank fraud related to the Paycheck Protection Program (PPP) when she obtained over $6 million in fraudulent proceeds. A significant federal sentence, such as the one she received, hopefully deters others from following the same path.”4 Jan 2022
How can I avoid paying back a PPP loan?
6-month deferment (you don't have to start paying back the loan for 6 months—however, interest still accrues during this period) Note: as of June 5, 2020, payments are deferred until you receive approval from the SBA on your application for loan forgiveness, or 10 months after the end of your covered period.)