PPP Loan Standard of Necessity: What Does This Mean for Your Business? (On-Demand)

$134.00

On March 26, 2021, the Department of Justice issued a press release trumpeting the agency’s “historic level of enforcement action” in response to COVID-19 related fraud. DOJ announced that it had criminally charged 474 individuals for their alleged efforts to fraudulently obtain a collective $569 million through schemes related to the COVID-19 pandemic. Nearly one year earlier, on April 28, 2020, former U.S. Treasury Secretary Steven Mnuchin had told large companies they should “apologize” for taking Paycheck Protection Program loans. He promised audits of PPP loans over $2 million, and he threatened criminal liability for false certifications of eligibility.

Fraud liability stems in large part from the certifications companies are required to make to participate in the government’s COVID-19 relief programs. To participate in the PPP, companies had to endorse multiple certifications on their loan applications, including: “Current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” This webinar will help attorneys understand the risks associated with the certification of necessity as the focus of the PPP continues to shift to loan forgiveness.

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Event Details

Course Type

Original Date Of Course

Course Instructor

Adrianne Goins, Esq.

General Credits

1

Course Description

On March 26, 2021, the Department of Justice issued a press release trumpeting the agency’s “historic level of enforcement action” in response to COVID-19 related fraud. DOJ announced that it had criminally charged 474 individuals for their alleged efforts to fraudulently obtain a collective $569 million through schemes related to the COVID-19 pandemic. Nearly one year earlier, on April 28, 2020, former U.S. Treasury Secretary Steven Mnuchin had told large companies they should “apologize” for taking Paycheck Protection Program loans. He promised audits of PPP loans over $2 million, and he threatened criminal liability for false certifications of eligibility.

Fraud liability stems in large part from the certifications companies are required to make to participate in the government’s COVID-19 relief programs. To participate in the PPP, companies had to endorse multiple certifications on their loan applications, including: “Current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” This webinar will help attorneys understand the risks associated with the certification of necessity as the focus of the PPP continues to shift to loan forgiveness.

Principles

  • Overview of the Paycheck Protection Program (PPP) established by the CARES Act
  • Required certifications by applicants for PPP loans, with focus on certification that a PPP loan is necessary to support the applicant’s ongoing operations
  • Potential liability for false certifications under the False Claims Act, overview of FCA damages and penalties
  • Considerations for documenting a PPP borrower’s good faith determination of necessity

Syllabus

  1. Introduction and Overview of Paycheck Protection Program
  2. The Standard for Necessity Under the CARES Act
  3. Potential Liability under the False Claims Act
  4. Documenting the Good Faith Determination of Necessity

Instructor

Adrianne Goins, Esq.

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