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Everything You Need to Know About SBA Loan Fraud

SBA loan fraud is a serious offense that has landed some small business owners in trouble with the government. While most business owners who apply to SBA programs and receive federal funds for their business use it in the way intended, some don’t. Many people don’t know the ins-and-outs of the terms when they get an SBA loan.  But in court, not being knowledgeable of the law is not an excuse if you’ve been accused of committing a crime. So whether you intentionally made a mistake on your SBA loan application or purposefully try to commit fraud, there will be consequences. If you have been accused of Federal Small Business Administration (SBA) loan fraud, there are a few steps you should take that can help you get through this situation. Here’s what you need to know about SBA loan fraud and when to seek legal advice.

What Is SBA Loan Fraud?

A person or business is said to have committed loan fraud when they make false material statements to a federal agency or financial institution. If these untrue statements mislead a lender into giving a loan, it’s fraud.

When to Hire a Criminal Defense Attorney

If you are facing charges for loan application fraud by the Small Business Administration or any charges related to federal fund mismanagement, you want to hire a federal criminal defense attorney immediately.

They can review your case and create an actionable defense plan. A knowledgeable attorney specializing in SBA loan fraud cases can advise you of your legal options.

Consequences of SBA Loan Fraud

There are different consequences based on the fraud you or your business have been accused of committing.

Acts involving loan fraud fall under specific statutes. If you go to trial, a prosecutor could seek criminal charges for false statements made on your loan application, to the SBA, or a federal agency.

You could rack up additional charges like mail fraud if you use the mail system for your application. If convicted of loan application fraud, you could face up to 30 years in prison and pay a possible fine of up to $1,000,000.

A false statement to the SBA to get a loan is considered a two-year felony and violators have to pay a fine of up to $5,000. Making a false statement to a federal agency comes with a maximum penalty of five years in prison and $250,000 if convicted.

On top of all these consequences having a criminal record with charges for federal funds fraud could prevent you from qualifying for an SBA loan in the future.

Do You Know What to Do?

SBA Loan Fraud comes with federal charges, and knowing what to do in this type of situation can make all the difference. An experienced criminal defense attorney can help you understand the best way to protect your rights and build your defense case.

Facing federal Small Business Administration loan fraud charges is unsettling. That’s why we are here to help you in your time of need. Our trusted team of lawyers will go to work on your behalf.

Reach out for a free case review and get the peace of mind you deserve!


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