charged with sba loan fraud?
Are you facing charges for SBA loan fraud? Obtaining funds from the federal government through fraudulent statements or other acts of deceit is a serious crime. SBA loan fraud can result in criminal convictions and years in federal prison.
The following blog addresses some of the most common questions that clients ask regarding being charged with SBA loan fraud. Reviewing this information is crucial if you are facing any serious allegations of fraud involving the SBA or any government agency.
What are SBA Loans?
SBA loans are funds issued by the federal government through the Small Business Association (SBA). The SBA is a government agency that provides financial and educational support to small businesses in the United States.
The SBA also connects small businesses with loans and grants through major banks. The SBA does not supply the funds, but instead makes these funds more attainable for business owners by backing these accounts.
WHAT ARE Types of SBA Loans?
Types of SBA Loans Include:
- SBA 504
- SBA 7(a)
- SBA Microloans
- SBA Export Loans
- Disaster Loans
What is SBA Loan fraud?
All forms of fraud fall under a category of law that is known as white collar crimes. These crimes are non-violent in nature and involve illegal activities solely committed for financial gain.
There are many different ways that an individual could commit SBA loan fraud.
What Happens if You Misuse SBA Loan Funds RELATED TO COVID LENDING?
- 123.9 SBA specifies that Covid19 disaster loans are issued with specific terms regarding their permitted use. Failure to use these funds are intended is considered wrongful misapplication of proceeds. This also applies to the non-use of the funds within 60 days of receiving the disbursement check.
Under Section 7 (b) the SBA will reach out when they have reason to believe that funds have been misused. Failure to reply within 30 days will result in the collection of remaining loan balance. Civil and criminal penalties will follow.
What are some Examples of SBA Loan Fraud?
- An individual creates a fake business to apply for funding.
- Making false statements about a legitimate business to acquire loan approval.
- Applying for a loan with no intention of repaying it.
WIRE FRAUD AND THE SBA
What Penalties Could You Face for SBA Loan Fraud?
Penalties for SBA loan fraud are steep and could include excess fines and time behind bars. The extent of these penalties will depend on the specific charges of which you are convicted.
Potential penalties include:
- A conviction for intentionally making false statements on a loan application and/or bank fraud could result in up to 30 years behind bars and $1 million dollars in fines.
- A conviction for making false statements to the SBA could result in 2 years behind bars and a fine of up to $5,000.
- A conviction for making false statements to any government agency would result in up to 5 years behind bars and fines of up to $250,000.
Facing multiple charges significantly increases the penalties, including maximum prison sentences and fines
What Defenses Could Be Utilized for SBA Loan Fraud?
There are several defense strategies that an experienced SBA loan fraud defense lawyer may utilize to defend you against these charges.
- Innocent Mistake
- Lack of Intent
The prosecution will need to prove beyond a doubt that you knowingly and willing committed SBA loan fraud. This will involve proving that false statements and/or fraudulent acts were committed with the intent to deceive, and that damages resulted from these actions.
A SBA Fraud lawyer is here to help
Choosing a fraud defense lawyer who is experienced in the federal courtroom is the key to beating charges of SBA loan fraud. The prosecution knows which attorneys will fight for their clients. Gallian Firm is experienced in fighting serious allegations of government loan fraud and will build a solid defense to fight your case.
An attorney’s job is to fight back against anyone who stands against you in the courtroom. An attorney can question law enforcement, argue the prosecution, and create doubt surrounding your criminal allegations. These are critical elements in a successful SBA fraud defense case .