Promissory Notes - Banking & Finance Insights, Volume 2, Issue 8

Biden Signs Bills Aimed at Catching Pandemic Business Loan Cheats -

"President Joe Biden signed a pair of bills that will give the Justice Department more time to investigate and prosecute people accused of fraudulently collecting government payments aimed at helping small businesses during the COVID-19 pandemic."

Why this is important: In recent issues of Promissory Notes, we have been tracking developments in the prosecution of alleged fraud in the various economic relief programs that emerged during the COVID-19 pandemic. The Paycheck Protection Program ("PPP") and the Economic Injury Disaster Loan ("EIDL") were two of the main programs targeted by fraudsters, with an estimated $80 billion in fraudulent loans and grants between the two programs. This month, the President signed the PPP and Bank Fraud Enforcement Act and the COVID-19 EIDL Fraud Statute of Limitations Act with bipartisan support. At their core, the two laws extend the statute of limitations for criminal charges and civil enforcement in prosecuting fraud to 10 years. Without these two laws, the statute of limitations would have expired after only six years. Both lenders and borrowers should take steps to protect themselves and their customers from any pandemic related fraud. In addition to conducting their own internal analysis of any PPP or EIDL loans, company document retention practices should be adjusted as well. Lenders and borrowers should hold and maintain all records related to these programs for a minimum of 10 years from when the loan application was received, processed or forgiven. In addition, the lessons learned through this process should be applied to future relief programs to help prevent fraud on the front end as well.

Please see full Newsletter below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Spilman Thomas & Battle, PLLC | Attorney Advertising

Written by:

Spilman Thomas & Battle, PLLC
Contact
more
less

Spilman Thomas & Battle, PLLC on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.