What Is Paycheck Protection Program Loan Fraud Whistleblowing And How Can An Attorney Help?by Brown LLC Whistleblower Law Firm,Class Actions and Injury La
The federal PPP (Paycheck Protection Program) is instrumental in aiding small businesses across the nation to survive the economic fallout due to the Coronavirus pandemic. Not only does the PPP loan scheme ensure much-needed financial backup to help struggling businesses hold onto their workforce and run the business effectively, it as well assures the recipients of scope to have the loan forgiven so long as they adhere to the stipulations of the program for loan forgiveness.
Unfortunately, upon the first introduction of PPP loan, there are thousands and thousands of loan applications submitted within a very short period of time, and with few safeguards in effect, most business owners failed to meet the criteria for receiving PPP loan; while those who receive mostly came under federal investigation due to misuse of the loan.
Therefore, the SBA lately announced that it has decided to audit all PPP loans above $2 million that pass through in order to ensure they were acquired in good faith. With a constant PPP fraud audit and investigation underway, the authorities are hoping to face lesser and lesser PPP loan fraud cases.
To qualify for COVID-19 Relief needs your business to present a genuine and credible need
The federal government had acknowledged that the Coronavirus pandemic came up with a challenge that made small businesses suffer the most in the past year. As a result, a wide range of tools or devices were made available to aid businesses, struggling to retain their workforce or at least remain in the business.Types of PPP loan –
The PPP that provides loans to companies to retain their workforce
Covid-19 Economic Injury Disaster Loans (EIDL), general loans to help the businesses remain operative
The above-mentioned loans are typically not available to everyone who applies. For instance, the EIDL loans are available only if the company can prove that they are operating on a small scale. In the USA, this usually refers to a business with a workforce of fewer than 500 staff. Unfortunately, it never stopped larger businesses from applying for EIDL loans. This is merely an example of COVID-19 fraud that breaches federal law. Our PPP loan fraud whistleblower attorney will be able to provide you with more information as to what actually violates PPP loan program regulations.
Supporting PPP loan fraud witnesses to come forward as whistleblowers
The government has numerous regulatory agencies with the power to investigate and penalize those who have abused COVID-19 loan programs. They, unfortunately, are often short of resources to find and investigate each scam. Therefore, the Department of Justice relies on a whistleblower program that has been designed to empower individuals to come forward to report violations of the law.
Encouraging individuals to report violations of the law under the False Claims Act will result in a financial reward. If the information that a whistleblower passed on leads to a successful and honest conviction, they maybe be eligible to receive a monetary award between 15 and 25% of the fund recovered during the prosecution. Brown, LLC PPP loan fraud attorneys can help you look for these awards.
Consult with Brown, LLC PPP loan fraud attorneys TODAY
The diverse government relief schemes available because of Coronavirus could provide important economic relief for thrashing about their businesses. Loans under the CARES Act, EIDL, or even PPP could provide significant financial flexibilities in times where finances might be damaged. These loans have been made available only for small-scale businesses, however, this never made larger companies stop from applying, and this is where the need for PPP loan auditing, investigation, and whistleblowing rose.
Brown, LLC’s PPP loan fraud attorneys can make your PPP loan fraud whistleblowing procedure easy and potentially a successful one.
Created on Dec 8th 2021 01:24. Viewed 265 times.