What happens if you get a PPP loan fraudulently?
It is illegal to make false statements to a financial institution, so if you were to lie on a PPP loan, you could be charged with this federal crime. This act is criminalized under section 1014 and if convicted, you can face quite a hefty fine along with imprisonment for up to 30 years.
What happens if you don’t want a PPP loan?
If you don’t apply for loan forgiveness, your loan payments will be deferred for 10 months after the end of your selected covered period (8 or 24 weeks, depending on your loan) No collateral or personal guarantees are required. The government and lenders are not allowed to charge you any fees for your loan.
What happens if you default on PPP?
Loan defaults All PPP and EIDL loans up to $25,000 don’t require collateral or personal guarantees from the business or business owner. So, in the event a borrower can’t repay the loan and defaults, the lender generally wouldn’t be able to seize business or personal assets.
Do you pay PPP loan back?
Yes. PPP loans (the full principal amount and any accrued interest) may be fully forgiven, meaning they do not have to be repaid. If you do not apply for forgiveness, you will have to repay the loan.
What documents are needed for PPP forgiveness?
How to Get Your PPP Loan Forgiven
- Name of your business: business legal name, DBA, trade name (if applicable)
- Business Tax Identification Number (TIN): Social Security number (SSN) or Employer Identification Number (EIN)
- SBA loan number.
- Your PPP loan amount.
- EIDL advance amount (if you got one)
What if I made a mistake on my PPP application?
First, if you feel that you made a mistake on your PPP loan application, reach out to your lender as soon as you can. If your loan application was not approved due to a mistake, then you can correct your error/s and resubmit your application.
Can you reject a PPP loan?
It’s possible that a lender will reject your loan application even if your business is eligible for a loan. Lenders reviewing loan applications will put businesses through a version of their underwriting process.
What is the penalty for PPP loan?
Depending on the size of the PPP loan, this can result in a $5,000,000 fine and up to 10 years in prison. 18 U.S.C. ยง 1343: Wire Fraud. This can result in fines and up to 20 years in prison.
Why are people going to jail for PPP loans?
Takeaways. PPP loan fraudsters have been charged more often than not with multiple offenses, ranging from wire fraud, bank fraud, fraud involving major disaster funds, identity theft, Social Security fraud, making false statements, money laundering, and conspiracy.
https://www.youtube.com/watch?v=ckuWqdlZlQ8