SBA EIDL Fraud & How It Is Discovered

SBA EIDL Fraud & How It Is Discovered

Every day, and often multiple times a day, we read stories about people or businesses being indicted for PPP or SBA EIDL loan fraud.

I have always wondered how these cases are discovered.

First, the SBA Inspector General has an online portal to submit loan fraud reports. The portal can be found at https://www.sba.gov/about-sba/oversight-advocacy/office-inspector-general/office-inspector-general-hotline#submit-a-complaint.

Second, the FBI has special agents and field offices throughout the country investigating SBA EIDL loan fraud and

Third, The New York Times recently published an article titled "They Investigated Pandemic Fraud, Then Earned Thousands," available at https://www.nytimes.com/2024/11/23/us/politics/pandemic-fraud-lawsuits.html. The article explains that under the False Claims Act, private citizens can file lawsuits on behalf of the federal government against those who may have defrauded the United States. If the government recovers funds, these citizens can typically earn between 15 and 30 percent of that amount. These lawsuits are known as "qui tam," or whistle-blower cases, and citizens have recovered hundreds of thousands of dollars by bringing these cases.

This story brings to mind the old adage that one person's misfortune is another person's fortune!

Jim Shenwick, Esq

917-363-3391

jshenwick@gmail.com

Please click the link to schedule a telephone call with me

https://calendly.com/james-shenwick/15min

We help individuals and businesses with too much debt!

Subchapter V Bankruptcy Updates

 

A Bloomberg article https://news.bloomberglaw.com/bankruptcy-law/senate-proposal-would-grow-small-business-bankruptcy-

eligibility  is reporting that a new Senate proposal aims to increase the debt limits for Subchapter V bankruptcy eligibility for

small businesses. This proposal would restore the higher debt limit of $7.5 million for Subchapter V filings, up from the current

limit of about $3 million. The expansion would allow more businesses to take advantage of Subchapter V's benefits, which

include a more streamlined and cost-effective restructuring process compared to traditional Chapter 11 bankruptcies.

The potential revival of the higher debt limit comes after a significant drop in small business bankruptcy filings following the

expiration of the previous $7.5 million threshold.

Subchapter V, introduced in 2019, initially applied to businesses with less than $2.7 million in debt but was expanded to $7.5

million in 2020 as part of COVID-era business relief. This expansion was extended in 2022 but eventually expired, reverting

the eligibility requirement to about $3 million.

We are monitoring these developments and will continue to report on updates to Subchapter V. 

We help individuals and businesses who have too much debt!

Jim Shenwick, Esq  917 363 3391  jshenwick@gmail.com 

Please click the link to schedule a telephone call with me.

https://calendly.com/james-shenwick/15min

We help individuals & businesses with too much debt!