Why these cases are still being opened
Economic Injury Disaster Loans were approved quickly during the pandemic, often based on information applicants entered themselves, and investigators have since been comparing those applications against tax returns, bank records, and other data. Congress lengthened the time limit for bringing charges in pandemic loan fraud cases, so older applications can still draw scrutiny. Issues commonly involve overstated revenue or headcount, businesses that did not exist, or loan funds used for purposes the loan did not allow. The SBA's Office of Inspector General and the Justice Department handle many of these matters, which can be pursued criminally, civilly under the False Claims Act, or through administrative collection. Identity theft victims who never applied for a loan face a different set of problems.
Records that tell the real story
Gather your loan application, the loan agreement, the business's tax returns and bank statements for the relevant period, and records showing how the loan proceeds were spent. If someone else prepared the application for you, keep your communications with that person. Do not try to repay the loan or adjust records in response to an inquiry without first talking with counsel, since how and when that happens can matter. If the loan was taken out in your name without your knowledge, report it to the SBA, file an identity theft report with the FTC, and keep copies of everything. Respond to any notice before its deadline.
What an early review covers
We review the application, the supporting records, and the inquiry you received to understand what the government is focused on. Differences between reported and actual figures sometimes have innocent explanations, such as confusion over how revenue was supposed to be calculated, and those explanations need documentation. We discuss whether the matter appears criminal, civil, or administrative, and what each path could mean for you and the business. If you are a victim of identity theft, we focus on clearing the debt and any credit damage. In each situation, we help you respond without making statements that create new problems.
