Roughly 25% of PPP loan funds went directly to workers who would have lost their jobs. The rest (75%) went to business owners, shareholders, creditors, and suppliers of companies receiving loans.
If you're looking to check who's received EIDL grants, EIDL loans, or PPP loans, the SBA has made recipient data publicly available. ... This information was outlined recently in the SBA Inspector General Identity Theft and Fraud Report.
One way to check is to review your full credit reports. If you see a hard inquiry from the SBA (Small Business Administration) that means a financial institution ran your credit due to receiving either a PPP or EIDL application. You will need to contact the SBA to find out more.
The SBA later confirmed that independent contractors and other self-employed individuals without employees are just as qualified for this program. As an actor, musician, artist, or other performer in the entertainment industry, you earn a paycheck and have financial needs just like anyone else.
* Overall average loan size is: $59K.
Making false statements to the SBA or a financial institution (18 U.S.C. § 1014) – A term of imprisonment of up to 30 years, a fine of up to $1,000,000, or both. Aggravated identity theft (18 U.S.C. § 1028A) – A two-year term of imprisonment, to be served in addition to the penalty for the underlying felony offense.
Several government agencies investigate PPP loan fraud. The Small Business Administration (SBA) is the primary agency disbursing PPP loans and is the lead investigator in many ongoing cases. The FBI, DOJ, and the Treasury Department are also investigating.
If you applied for your PPP loan via Womply, you can check loan application status at https://www.womply.com/ppp-status/. If you did not apply through Womply, you will need to contact your SBA-approved lender and request a status update.
Under open government transparency guidelines, information on recipients of the $793B in forgivable government loans issued through the 2020 Paycheck Protection Program by the US Small Business Administration (SBA) are a matter of public record.
Whether a PPP loan fraud case involves thousands, hundreds of thousands, or millions, defendants can receive prison sentences in these cases. If there is evidence of fraud, people can go to jail for a $20,000 PPP loan, just like someone whose PPP loan was $100,000 or $1 million.
Illinois has a total of 621,411 businesses that received Paycheck Protection Program (PPP) loans from the Small Business Administration.
From start to finish, the process typically takes about two weeks, although some borrowers are receiving funds quicker than that. As long as you stay involved in the process, keep in touch with your lender, and understand how the PPP loan process works, you should be seeing your money in no time at all.
Bank of America was the first major bank to accept PPP applications in April 2020, and has since delivered 475,000+ PPP loans — totaling nearly $34.5 billion in funding.
The SBA's rules say they must fund approved PPP loans within 10 calendar days from the date of approval, although if the borrower hasn't provided correct information then it can be up to 20 days. However, if day 10 (or 20) falls on a weekend and/or bank holiday, then it's the next business day.
A 30-year-old Texas man has been sentenced to 9 years and 2 months in prison for fraudulently acquiring more than $1.6 million in funds through the government's coronavirus pandemic Paycheck Protection Program [PPP], the Department of Justice said Monday.
Steps to Take if You're Being Accused of PPP Loan Fraud
During the audit, the SBA will look at: Whether or not there were lies or inconsistencies in your original application; Whether your business was negatively affected by COVID-19 and in genuine need of the loan; ... All loan forgiveness was proper.
Depending on the circumstances, the federal government might charge people accused of defrauding the PPP under the following provisions: 15 U.S.C. § 645: Making a false statement to the SBA. This can result in a fine of up to $5,000 and up to 2 years in prison.
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BlueVine offers approvals in as little as five minutes, and funds can be available within a few hours of approval. You can choose free ACH transfer, and funds will usually arrive the next business day, but it can take up to three days. A bank wire costs $15 and funds the same day.
60/40 Rule
However, as a self-employed worker, you can claim all 100% of your PPP loan as payroll under compensation replacement. Forgivable cash compensation is limited to $100,000 per employee on an annualized basis, which means you can use all $20,833 on your personal salary.
PPP loans are calculated using the average monthly cost of the salaries of you and your employees. If you're a sole proprietor or self-employed and file a Schedule C, your PPP loan is calculated based on your business' gross profit (or gross income). Your salary as an owner is defined by the way your business is taxed.
The current estimate of when the SBA will inform you of the terms you have been approved for is 3-4 weeks. They will send you the approved loan documents for you to review, sign, and return. The SBA will then deposit the funds direct deposit within 3-5 business days.
Please call our Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard of hearing) or email DisasterCustomerService@sba.gov to check the status of your application. If you have already applied, you do not need to submit your information again. 3.