If you are facing charges of PPP Loan Fraud, having an experienced attorney on your side is invaluable. As our friends at Stechschulte Nell understand, there are a wide variety of consequences that you may be facing, and taking the right steps towards defending your rights and mitigating these consequences is imperative.
What Happens If I Can’t Repay The Money?
If the government believes you received Paycheck Protection Program (PPP) funds fraudulently and you’re unable to repay the loan, you may face both civil and criminal penalties. This can include fines, restitution, or even prison time depending on the circumstances. The government often seeks to recover misused funds through asset seizure, wage garnishment, or liens. Working with a legal representative early on can help you respond to these claims and potentially negotiate more manageable repayment terms or settlements.
Can I Discharge PPP Loan Debt In Bankruptcy?
In most cases, PPP loans are backed by the federal government, and loans obtained through fraud are not dischargeable in bankruptcy. If fraud is proven—or even strongly suspected—the loan will remain your responsibility. However, a bankruptcy filing might still help with other debts, which can free up resources to deal with your PPP-related financial obligations. It’s important to speak with an experienced debt relief attorney to understand your options.
What If I Didn’t Knowingly Commit Fraud But Still Can’t Repay The Loan?
If you didn’t intend to deceive the government and the issue stems from errors or business hardship, you may have a stronger position to request repayment adjustments or to dispute fraud allegations. You may be able to argue that the loan was used for eligible expenses and that any errors were unintentional. Providing documentation of your good-faith efforts and financial losses can help your legal counsel build your case.
Is It Possible To Negotiate A Repayment Plan With The Government?
Yes, repayment plans or settlements may be available, particularly in civil enforcement cases. These agreements depend on your financial situation and whether you’re facing criminal charges. If charges have not yet been filed, addressing the issue proactively with legal guidance can sometimes reduce the risk of prosecution. Once charges are in place, negotiations often become part of the broader legal defense strategy.
What Mistakes Should I Avoid Making?
A PPP loan fraud defense lawyer knows that there are many mistakes and pitfalls that it is important to avoid falling into. Avoid ignoring communications from government agencies, destroying documents, or trying to repay the loan through questionable methods. These actions can make your situation worse. Instead, gather all your records related to the loan and consult with legal counsel. Even if your intent was honest, failing to respond correctly can lead to serious consequences.
Is There A Way To Resolve These Issues Without Going To Trial?
Many cases involving alleged fraud are resolved outside of court. Negotiated settlements, repayment agreements, or plea deals (in criminal cases) may be options depending on the details of the case. A defense lawyer familiar with PPP loan cases can evaluate the likelihood of avoiding trial based on your specific circumstances.
Contact A Lawyer Today
If you’re dealing with the financial and legal fallout of PPP loan issues, don’t wait to get help. Whether you’re facing accusations or dealing with repayment demands, working with someone experienced in PPP loan defense can make a significant difference.