Paycheck Protection Program Fraud
DiCello Levitt offers straight answers to your PPP fraud questions, including:
- What is the PPP?
- What is required for legal PPP loan forgiveness?
- How can I tell if my employer committed PPP fraud?
- What should I do if my employer committed PPP fraud?
The PPP is a low-interest loan program developed in the COVID-19 crisis to help companies pay their workers’ salaries.
PPP loans were issued in 2021 in two “draws”–the first draw was meant to fund payroll costs and employee benefits; the second draw was designed for eligible borrowers and increased the maximum loan amount that could be borrowed.
More information about First “Draw” loans…
First Draw loans were primarily intended to fund payroll costs and employee benefits.
Up to 40% of the loan funds were eligible for use on mortgage interest, rent, utilities, costs to protect workers from COVID-19; uninsured property damages caused by looting or vandalism in 2020; and, certain other operational expenses.
More information about Second “Draw” loans…
Second Draw loans were made to eligible borrowers who had received a First Draw loan under the same general terms.
However, the Second Draw increased the maximum loan amount available to the accommodation and food services sector from 250% of the average monthly 2019-2020 payroll costs [capped at $2 million] to 350%.
To qualify for the Second Draw, a borrower was required to show that it:
- Received a First Draw PPP loan and used the full amount for authorized uses;
- Had no more than 300 employees; and,
- Had at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
PPP borrowers are eligible for loan forgiveness when they meet certain terms and conditions…
During the 8- to 24-week covered period following loan disbursement, the employer must meet the following guidelines for their PPP loans to be eligible for forgiveness:
- Employee and compensation levels are maintained;
- The loan proceeds are spent on payroll costs and other eligible expenses; and,
- At least 60% of the proceeds are spent on payroll costs.
Borrowers can apply for loan forgiveness after all the loan proceeds for which they are requesting forgiveness are used–up to the maturity date of the loan–as long as they apply within 10 months after the last day of the covered period.
If an employer does not follow these rules, they are committing PPP loan fraud to the harm of American taxpayers.
If you suspect your employer has broken any of the PPP loan terms, your best option is to speak with a PPP whistleblower lawyer to determine how to stop them from continuing to defraud the government
The Attorneys of DiCello Levitt are Experienced, Exceptional Whistleblower Lawyers That Understand PPP Fraud and Know How to Protect You.
Call DiCello Levitt at (877) 659-1294 for a free, confidential consultation today– after all, the longer you wait to report, the less likely you will be to get a reward.
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Have you witnessed PPP Fraud?Download our PDF here
If you have seen documents or other evidence that suggest PPP loan fraud, trust your instincts. Contact DiCello Levitt for a free, confidential consultation today, because the longer you wait to report, the less likely you will be to get a reward.CONTACT US