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Getting Caught: Small Business Owners Committing EIDL and PPP Fraud

Updated: Mar 20, 2022

Regardless of whether or not small business owners believe they did anything wrong, they should understand what is happening.


From April 2020 to December 2021 over $1.2 Trillion was delivered to small businesses in the

form of the Payroll Production Program and Economic Injury Disaster Loans. While many small business owners saved their businesses because of PPP and EIDL, many small business owners provided information to banks and the SBA which were inaccurate and in many cases, purposely fraudulent. This article reviews current oversight efforts and actions by the Department of Justice for those who submitted inaccurate or fraudulent information to get funded. We highlight several cases where small business owners committed fraud.


We also have updated our previous rankings of the Top 15 Frontline Zeroes of The Pandemic and added some new Dishonorable Mentions.


By Thomas Tramaglini, Managing Director at BRP Onesta info@BRPOnesta.com www.backofficedepot.com www.thomastramaglini.com About Thomas Tramaglini


Introduction


Many small business owners benefitted from COVID Relief programs in 2020 and 2021. Specifically, over a $1.2 Trillion dollars were provided to small businesses through programs like the Payroll Production Program and the Economic Injury Disaster Loan. Yet, since the onset of these programs, the government has been going after small business owners who abused these programs. Either by submitting inaccurate and in some cases fraudulent documents or by misusing the funds small business owners, one by one the government is going after small businesses.


Does the government really referee COVID Relief Programs for small businesses?


The answer is yes.