What is PPP Loan Fraud?
During the COVID-19 pandemic, the federal government provided funding opportunities for businesses that were impacted by shutdowns and economic difficulties, some of which had to be repaid and others that did not. The Paycheck Protection Program (PPP) ran from mid-2020 through May 31, 2021, with some of the borrowers being eligible for forgiveness of the loans they received through the PPP. At the same time, however, in recent years, the federal government has intensified investigations into PPP loan fraud, and the United States Department of Justice (DOJ) has initiated fraud-related actions against numerous small business owners.
What is PPP loan fraud, and how is this being charged under federal law? And what should you do if you are being investigated for PPP loan fraud? Our Tampa federal fraud defense attorneys can provide you with more information, and we can get started on your case for you today.
PPP Does Not Have Criminal Enforcement Provisions
At the start of the COVID-19 pandemic, the federal government created the PPP loan program to help smaller business owners remain afloat despite the economic difficulties associated with the pandemic. The loans came with a 1 percent interest rate, but if debtors met particular conditions, they could be eligible to have their PPP loans forgiven (different from Economic Injury Disaster Loan, or EIDL, loans that many businesses also received at this time). In total, hundreds of millions of dollars were provided to businesses through PPP loans. However, the government has begun investigating many recipients of these loans for fraud.
The PPP does not itself, however, have provisions for criminal enforcement. Accordingly, while you may be facing accusations of PPP loan fraud, the criminal charges you could face are not going to come under the Paycheck Protection Program or the language authorizing it. Instead, depending on what type of PPP fraud you have specifically been accused of, you could be facing charges under different types of federal fraud criminal statutes.
Statutes Under Which PPP Loan Fraud Charges Can Occur
Depending in part on whether you are accused of fraud in your PPP application, your use of the loan money you received, or the certification you provided for forgiveness of the PPP loan, you could potentially face charges under one or more federal criminal laws that prohibit the following:
- Bank fraud;
- Wire fraud;
- Tax evasion;
- False Claims Act violations;
- Making false statements to the United States Small Business Administration (SBA);
- Making false statements to a bank; and/or
- Identity theft or aggravated identity theft.
The potential consequences of a conviction will depend upon the specific federal statute under which charges are brought, but most will result in a substantial monetary fine and a term of imprisonment.
Contact Our Tampa Criminal Defense Attorneys If You Are Facing Criminal Charges Related to PPP Loan Fraud for Funds Received During the Pandemic
Are you being investigated for PPP loan fraud or facing charges related to alleged PPP loan fraud? One of the experienced Tampa federal fraud defense lawyers at the Law Offices of Daniel J. Fernandez, P.A. can begin working with you today on your defense. Contact us to learn more about how we assist clients facing federal fraud allegations.
Sources:
justice.gov/opa/pr/one-week-dojs-new-fraud-division-secures-300m-funding-prosecutorial-support-while-announcing
sba.gov/article/2026/04/24/sba-sends-562000-suspected-fraudulent-loans-treasury-collections-totaling-22-billion
