Given the volume of funds that were quickly dispersed during the COVID-19 pandemic, there were plenty of new areas for fraud and abuse. The Department of Justice (“DOJ”) initially set its sights on targeting the borrowers of such funds. Now, the DOJ is ramping up enforcement with the first ever False Claims Act (“FCA”) settlement with a lender of Paycheck Protection Programs (“PPP”) funds.
The Paycheck Protection Program (“PPP”) was critical in helping small businesses stay afloat amidst the COVID-19 pandemic and resultant government restrictions on all manner of commerce. Now, as more businesses have applied for PPP loan forgiveness, some will receive notice that the United States Small Business Administration (“SBA”) is denying forgiveness of those loans. Small businesses whose PPP loans are denied will receive a letter that looks like this.
Blog Editors
Recent Updates
- Watch: DOJ’s New Self-Disclosure Rules: Decide Fast or Lose the Credit – Speaking of Litigation
- AI Medical Technology Meets IP Law in Patent Infringement Suit
- DOJ Civil Division Announces Accelerated Review of FCA Whistleblower Complaints Involving Federally Funded, State-Administered Benefits Programs
- Washington Amends CEMA: Plaintiffs Rush to File Actions Before June 11, 2026 Effective Date
- Five Cases Health Care and Life Sciences GCs Should Keep Watching in 2026