Tampa Economic Injury Disaster Loan Fraud Lawyer (EIDL)
The Economic Injury Disaster Loan (EIDL) is a long-term, low-interest program administered and overseen by the Small Business Administration (SBA). The program was designed to offer financial assistance to non-profit organizations, small businesses, and agricultural entities that temporarily experience a loss of revenue due to a national disaster, such as the COVID-19 pandemic. The funds provided can be used for working capital such as accounts payable, payroll, paying debts, and other operational expenses.
Without this assistance, many businesses would have to permanently shut their doors. Unfortunately, now many business owners are facing charges of EIDL fraud, which has serious consequences for those convicted. If you have been charged, it is critical that you speak to a Tampa Economic Injury Disaster loan fraud lawyer.
What is Economic Injury Disaster Loan Fraud?
EIDL loan fraud is a criminal offense that involves the misrepresentation, manipulation, or misuse of the EIDL program. There are many different ways EIDL fraud can occur. The most common of these include:
- Falsifying information: Falsifying information on their EIDL applications includes misrepresenting the number of employees businesses employ, inflating losses, or providing incorrect financial information. Applicants may also use fabricated or stolen identities, resulting in identity theft.
- Misusing funds: EIDL funds are intended to be used for specific purposes, such as rent, payroll, and other operational expenses. When recipients use these funds for non-qualifying business expenses or personal costs, it is considered fraud.
- Multiple applications: Some organizations have used different business entities or identities to receive extra assistance, which violates the program’s regulations.
- Colluding with insiders: In certain cases, it has been found that people inside the SBA have colluded with applicants to bypass the verification process or approve ineligible applications.
- Fraudulent businesses: Inflating the scale of an existing business or creating a fake business to receive EIDL assistance is another type of fraud.
Penalties for EIDL Loan Fraud
EIDL loan fraud is a very serious offense that comes with many penalties for those convicted. These are as follows:
- Prison sentences: A conviction for EIDL loan fraud can include long sentences in federal prison.
- High fines: Those convicted of EIDL loan fraud will also face very high fines, to punish defendants and deter others from taking similar actions. These criminal fines can reach up to hundreds of thousands of dollars or more.
- Restitution: Defendants may be required to pay restitution and compensate for the losses they incurred due to their deceptive actions. This can involve repaying funds that were misappropriated.
In addition to the above criminal penalties, there are civil consequences, as well. These can include civil fines, the forfeiture of assets, damage to the business’ reputation, and more.
Our Economic Injury Disaster Loan Fraud Lawyer in Tampa Can Help with Your Charges
Charges for EIDL fraud are extremely serious. At Scriven Law, our Tampa Economic Injury Disaster Loan Fraud lawyer can defend against them so you do not face the serious penalties associated with a conviction. Call us now at 813-226-8522 or contact us online to request a consultation with our experienced attorney. We are available 24 hours a day and 7 days a week to help.
