Paycheck Protection Program (PPP) Attorneys

Reliable Legal Assistance for PPP Loan Issues

At Raiser and Kenniff, P.C., we have seen firsthand how PPP loans have helped many small businesses in the NYC area and across the US. However, since the program has ended, we have also seen the number of PPP fraud allegations rise, and many New York City businesses have been accused of PPP loan fraud without just cause. If this has happened to you or you are struggling with another PPP loan-related issue, we are here to help.

Our law firm has over 100 years of combined experience in nationwide business debt settlement representation and criminal defense. We are here to put our experience to work for you. Contact us online or call (888) 646-0025.

Understanding the Paycheck Protection Program (PPP)

The Paycheck Protection Program (PPP) was a crucial initiative to assist businesses during the COVID-19 pandemic. This program provided SBA-backed loans to help companies keep their workforce employed amid the economic downturn caused by the crisis. The loans were designed to cover payroll costs, mortgage interest, rent, and utilities, ensuring that small businesses could maintain operations and support their employees.  

Notably, the PPP loans were incentivized by the possibility of forgiveness if certain conditions were met, such as retaining employees and using the funds for eligible expenses. After several extensions and modifications to address ongoing needs, the Paycheck Protection Program concluded on May 31, 2021.

Determining Eligibility for PPP Loan Forgiveness

Businesses that received PPP loans can determine their eligibility for loan forgiveness by assessing whether they meet specific criteria. Firstly, at least 60% of the loan proceeds must have been utilized for payroll costs, including salaries, wages, and employee benefits.  

Additionally, businesses must maintain their employee headcount and compensation levels during the covered period to qualify for forgiveness. Any reductions in workforce or pay could proportionately reduce the amount of loan forgiveness.

Moreover, PPP loans feature a low interest rate of 1% and a maturity of five years for any portion that remains unforgiven, making it crucial for businesses to comprehend and meet all forgiveness requirements to minimize financial liabilities.  

What is  PPP Loan Fraud?

PPP loan fraud involves obtaining Paycheck Protection Program funds through deceitful means or using the funds for unauthorized purposes. The U.S. government has intensified efforts to detect and prosecute such fraudulent activities to ensure financial assistance reaches the intended beneficiaries.

Common types of PPP loan fraud include:

• Providing false or misleading information on a PPP loan application.
• Using a fake identity or stolen personal information to apply for a PPP loan.
• Applying for multiple PPP loans using different business names or false information.
• Using a PPP loan for unauthorized purposes, such as personal expenses.
• Providing false or misleading information on a PPP loan forgiveness application.
• Creating fake employees and inflating payroll costs to receive a larger loan amount.
• Creating fake business expenses to receive a larger loan amount.
• Creating fake documentation to support a PPP loan application or forgiveness application.

Those found guilty of committing PPP loan fraud can face severe consequences, including imprisonment, substantial fines, restitution, and asset forfeiture.