Cares Act Fraud Lawyers
COVID 19 has truly changed the economy and has had a terrible impact on businesses. If your business has suffered, you might have taken advantage of the government loans for help. Any business that received CARES Act funds should take time to review this article.
While the funding might’ve helped, this could be trouble for your business in the future.
If you are accused of misusing PPP funds, it’s important you speak to our legal team. We have experience in handling fraud claims, and can help ensure you and your business don’t suffer a wrongful accusation. You need a federal attorney who understands how to defend Cares Act claims.
Congress based this bill in 2020 as a response to COVID-19. The act provided over $2 trillion in relief, including payouts for individuals. This also resulted in the Paycheck Protection Program, which protected small businesses which lost revenue due to shutdowns.
The PPP intent was to help businesses maintain their payroll, and rehire employees. The SBA runs this program and offered funding for up to 8 weeks. Under this program, if you got business funds, you could use them to cover payroll and overhead costs to keep the business running. The funding was made available through SBA lenders.
You must be a small business, as defined by the SBA, which means having fewer than 500 employees. In addition, you have to state that the current economic situation means you need the loan to support the business and continue its operations.
One of the issues with these loans is that they are meant to be forgiven, with certain conditions attached. You have to use the funds for allowed expenses only, and you can’t let go of employees, or decreases wages for at least 8 weeks.
One of the reasons the SBA is cracking down and wrongfully accusing businesses of fraud is due to the businesses incorrectly applying for forgiveness. In order to qualify for SBA loan forgiveness, you have to show that 75% of the funds were used on payroll expenses only. If you lie, you will need a criminal defense attorney at Lawscape to help you.