News & Analysis as of

Paycheck Protection Program (PPP) Loans CARES Act

Benesch

Paycheck Protection Program (“PPP”) Loan Fraud: A Survey & Analysis of Recent Civil & Criminal Enforcement Outcomes

Benesch on

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in or around March 2020 designed to provide emergency financial assistance to the millions of Americans who were suffering the...more

Ballard Spahr LLP

Overturning of Chevron Boosts Challenges to SBA PPP Loan Forgiveness Denials

Ballard Spahr LLP on

The U.S. Supreme Court’s recent overturning of the Chevron Deference Doctrine calls into question several Chevron-based federal court rulings allowing the Small Business Administration (SBA) to exclude many categories of...more

Mintz - Health Care Viewpoints

Acting U.S. Attorney Levy Forecasts False Claims Act COVID Cases Targeting Private Lenders Of CARES Act Loans That Failed In Their...

Acting U.S. Attorney Joshua Levy discussed the enforcement priorities for the Massachusetts U.S. Attorney’s Office (USAO) during a Q&A session on May 29, 2024, and made clear that the historical focus of the office remains...more

Lippes Mathias LLP

The Rise and Fall of the Paycheck Protection Program

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The Long-Term Effects Felt by Lenders Nationwide. As a result of the United States government instituting the Paycheck Protection Program (“PPP”), companies nationwide have defaulted on hundreds of thousands of PPP loans,...more

Fox Rothschild LLP

Federal Reserve Board Fines Bank for Processing PPP Loans That Had Signs of Fraud

Fox Rothschild LLP on

In its first enforcement action related to COVID-19 government aid programs, the Federal Reserve Board recently announced that it has fined New York-based Popular Bank $2.3 million for processing Paycheck Protection Program...more

Morrison & Foerster LLP

Biden Administration Extends Statute of Limitations for PPP and EIDL Fraud to Ten Years

Two weeks ago, President Biden signed two laws extending the statute of limitations for civil and criminal fraud actions involving the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) to ten years....more

Sheppard Mullin Richter & Hampton LLP

DOJ Investigating FinTech Over PPP Loans

On June 3, a federal court filing in the Southern District of Florida by an Atlanta-based FinTech company revealed that the small business lender is under DOJ investigation for alleged PPP loan approval practices. According...more

Bradley Arant Boult Cummings LLP

Government Ramps Up Enforcement Efforts on COVID-19 Relief Fraud

The federal government is substantially ramping up its enforcement of COVID-19-related fraud. In a press release issued yesterday, the United States Secret Service announced the naming of a “National Pandemic Fraud Recovery...more

Schwabe, Williamson & Wyatt PC

10 Things to Know about Second Draw PPP Loans as Updated for the Economic Aid Act and the ARP Act - Update #5

On January 6, 2021, the Small Business Administration (the “SBA”) and the Department of Treasury released an Interim Final Rule called “Business Loan Program Temporary Changes; Paycheck Protection Second Draw Loans” (“Second...more

K&L Gates LLP

COVID-19: Financial Institutions and Loan Recipients Will See Increased Congressional and Inspector General Investigations on...

K&L Gates LLP on

The economic response to the pandemic will continue to generate significant investigative scrutiny by Congress, inspectors general, and law enforcement—likely for years to come. The House Select Subcommittee on the...more

Morrison & Foerster LLP

DOJ Enforcement Actions Involving COVID-19 Relief Fraud: An Update

Soon after Congress passed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) in March 2020, the Criminal Division of the U.S. Department of Justice (DOJ) moved quickly to address potential COVID-19 related...more

Dickinson Wright

Deductions Available for Certain Expenses Paid with PPP Loan Proceeds

Dickinson Wright on

In March, 2020, the CARES Act established the Paycheck Protection Program which provided loans (“PPP loans”) to businesses meeting certain requirements. Subject to certain limitations, PPP loan recipients are entitled to have...more

Dickinson Wright

DW-China Trade Update (36th Edition)

Dickinson Wright on

Congress Restricts Chinese-Owned US Companies in Second PPP Loan Program - Last spring, as COVID began to threaten U.S. businesses, Congress enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”),...more

Arnall Golden Gregory LLP

Why Almost Anyone - Borrowers, Lenders, Landlords, Tenants, Vendors and Others - Should Care About Recent Amendments to the...

On December 27, 2020, the Consolidated Appropriation Act (“CAA”) was signed into law. The CAA amends the Bankruptcy Code in several significant respects. Most of the amendments expire in either one or two years unless they...more

BakerHostetler

Important Lessons from the DOJ's First Civil Action for CARES Act Loan Fraud

BakerHostetler on

On January 12, 2021, the Department of Justice (the “DOJ”) settled its first civil action for alleged fraud against the Paycheck Protection Program (the “PPP”) – the primary lending program under the Coronavirus Aid, Relief,...more

Alston & Bird

Paycheck Protection Program Restart and New Interim Final Rules

Alston & Bird on

With the latest round of the Paycheck Protection Program comes a pair of interim final rules from the Small Business Administration. Our Financial Services & Products Group explores the significant changes to the PPP brought...more

Wiley Rein LLP

New Round of PPP Funds Available

Wiley Rein LLP on

On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (Economic Aid Act) became law. This act reinstated the Paycheck Protection Program (PPP) by (1) making a new round of PPP funds...more

Patterson Belknap Webb & Tyler LLP

Paycheck Protection Program Act Update: Consolidated Appropriations Act, 2021

The Consolidated Appropriations Act, 2021 (the “Act”), which was signed into law on December 27, 2020, includes several updates to the Paycheck Protection Program (the “PPP”) originally established by the Coronavirus Aid,...more

K&L Gates LLP

2021: A New Year, the Same Fear - Why Companies Should Expect a Wave of PPP Investigations

K&L Gates LLP on

Four months after the expiration of the $659 billion forgivable loan relief program established by the CARES Act, the federal government has disbursed approximately 5.2 million Paycheck Protection Program (PPP) loans....more

Balch & Bingham LLP

Banks Headed for Total Victory in Agent Fees Class Actions

Balch & Bingham LLP on

Twice this year, Balch & Bingham reported on the wave of “Agent Fee” class actions against lenders who made PPP loans under the CARES Act. At one point, there were over sixty such lawsuits spread across the federal courts,...more

Alston & Bird

IRS Issues CARES Act Guidance Addressing Tax Issues Prevalent in M&A Transactions

Alston & Bird on

The CARES Act’s Paycheck Protection Program (PPP) was a boon to many businesses, but some of its particularities have become a headache to acquiring taxpayers. Our Federal Tax Group untangles how PPP loans affect employee...more

Arnall Golden Gregory LLP

SBA’s New PPP Loan Necessity Questionnaires Target PPP Recipients with Loans of $2M

On October 31, 2020, the U.S. Small Business Administration (“SBA”) published a Notice in the Federal Register seeking approval from the Office of Management and Budget for the collection of information through, among other...more

Nelson Mullins Riley & Scarborough LLP

SBA Releases Questionnaire for PPP Economic Necessity Certification for Borrowers of $2 Million or Greater

All applicants for Paycheck Protection Program (PPP) loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act were required to certify in good faith that current economic uncertainty made the PPP loan...more

K&L Gates LLP

COVID-19: New SBA Forms Asking Key Necessity and Liquidity Questions

K&L Gates LLP on

Borrowers of Paycheck Protection Program (PPP) loans of US$2M or more will be required to complete a new form as part of the Small Business Administration (SBA) review process, which appears to ask key questions about private...more

Dickinson Wright

IRS Announces No Information Returns To Be Filed for PPP Loan Forgiveness

Dickinson Wright on

Under the Paycheck Protection Program (“PPP”) established by the CARES Act, a borrower is eligible for forgiveness of all or a portion of the principal amount of a loan made in accordance with the PPP if certain conditions...more

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