FEDERAL CRIMINAL LAWYERS

How Long Should I Keep My PPP Loan Records?

Welcome to Spodek Law Group. Our goal is to help you understand why the official 6-year record retention guidance could destroy your ability to defend yourself—and what you should actually be keeping. If you’re here because you want to finally shred that PPP paperwork and move on with your life, you need to read this first.

Here’s what most people don’t understand: the SBA says keep your PPP records for 6 years. But the statute of limitations for PPP fraud is 10 years. If you destroy your records following official guidance in year 6 and then get investigated in year 8, you’ll have nothing to prove you used the funds correctly. And here’s the part that should really concern you—your lender has EVERYTHING you submitted. The government made sure of that. In August 2024, they extended lender retention requirements to 10 years specifically to “ensure PPP loan records remain available to law enforcement.” They kept the evidence. They didn’t require you to keep yours.

The official guidance creates a trap. You follow the rules, shred your documents, and then discover years later that the government has your complete file while you have nothing to rebut their interpretation. This isn’t hypothetical. This is how the system was designed. The people who get caught are the ones who trusted the government’s outdated 6-year guidance without understanding the 10-year reality.

The 6-Year Lie: Why SBA Guidance Is Dangerously Outdated

Heres the thing about the SBA’s 6-year retention guidance that nobody is telling you: it was written BEFORE Congress extended the fraud statute of limitations to 10 years. The guidance is technicaly correct for SBA administrative purposes. Its completly inadequate for your criminal defense.

In August 2022, President Biden signed the PPP and Bank Fraud Enforcement Harmonization Act. That law extended the statute of limitations for PPP fraud from 5 years to 10 years. It gave prosecutors twice as long to charge you. But the SBA never updated there borrower retention guidance to match. You’re following rules that were created before the enforcement landscape changed.

Think about what this actualy means. The SBA says 6 years. Prosecutors have 10 years. Theres a 4-year gap were the government can still charge you but your records are gone. Years 7, 8, 9, and 10 are exposure without defense. You destroyed the evidence that could prove your innocence becuase the government told you it was safe to do so.

The SBA’s 6-year guidance was written before Congress extended the fraud statute to 10 years—you’re following outdated rules. Look at the dates. Statute extension: August 2022. SBA guidance: unchanged from before. The asymmetry wasnt accidental. It was deliberate.

And heres the irony that should keep you awake at night: if you followed official guidance and shredded your records after 6 years, you did exactly what the government hoped you would do. You eliminated your defense while they preserved there evidence. The system worked as designed—just not in your favor.

The August 2024 Rule: They Extended Their Retention, Not Yours

OK so if the government really cared about borrowers having records, they would have updated the 6-year guidance when they extended the statute, right? They didnt. Instead, they did something far more revealing.

In August 2024, the SBA issued an interim final rule extending LENDER records retention requirements from 6 years to 10 years. Not borrower requirements. Lender requirements. The Federal Register notice explains exactly why: to “harmonize” with the extended statute of limitations and “ensure that PPP loan records remain available to law enforcement while they continue to investigate and prosecute PPP fraud.”

Read that language carefully. They extended retention to make sure records remain available to law enforcement. Not to protect borrowers. Not to ensure fair defense. To prosecute fraud. The government built the infrastructure to charge you for the full 10-year window. They made sure THEY have evidence. They didnt require YOU to keep evidence.

Heres the hidden connection most people miss entirely. Congress extended the statute in August 2022. The SBA extended lender retention in August 2024. These actions are coordinated enforcement strategy. Extend the prosecution window. Extend the evidence preservation. Keep everything available for prosecution. The system was built to catch PPP fraud years after the fact.

At Spodek Law Group, weve watched this unfold in real time. Clients come in assuming there records are long gone. Then they discover that there lender has every document they ever submitted—available to prosecutors for the full 10-year window. The asymmetry is striking. The government has your file. You dont have your file.

The 4-Year Gap: When They Have Evidence and You Don’t

Let that sink in for a moment. Theres a 4-year window were the government can prosecute you but you have no records to defend yourself. Years 7, 8, 9, and 10 after your last fraudulent act. Thats were people get destroyed.

Think about the timeline. You got your PPP loan in April 2020. You filed for forgiveness in late 2021. Following SBA guidance, you could destroy your records in late 2027—6 years after forgiveness. But your statute of limitations runs until late 2031—10 years after forgiveness. Thats 4 years were prosecutors can charge you and you have nothing to contradict there interpretation of your lenders file.

Your lender has your original loan application. They have your forgiveness application. They have every bank statement you submitted. Every payroll record. Every tax document. Every certification you signed. All of it preserved until at least 2031 or 2032 depending on when you filed for forgiveness. The government made sure of it with that August 2024 rule.

But you? If you followed official guidance, you have nothing. You shredded everything in year 6 becuase thats what the SBA told you to do. You were trying to clean up old files. You were trying to move on. You were following the rules. And you destroyed your only defense.

Heres the uncomfortable truth: in years 7 through 10, the prosecution has asymmetric advantage. They have your complete file. You have your memory—which fades, which can be wrong, which dosent hold up against documented evidence. They can point to specific documents you submitted. You cant point to anything becuase you shredded it.

What Destruction Could Cost You: Obstruction on Top of Fraud

Destroying records after 6 years following official guidance could become a separate federal obstruction charge. This is the part that really should terrify you.

If you destroy records and the government later investigates, prosecutors might argue you destroyed evidence. Obstruction of justice. Spoliation of evidence. These are seperate federal crimes that can be charged on top of whatever underlying fraud they think you committed. Sometimes the cover-up is worse then the crime.

You might think “but I followed official guidance—thats not obstruction.” Thats a defense you can make at trial. Thats not a guarentee you wont be charged. Prosecutors have discretion. If they think you destroyed evidence to hide fraud, they can charge you with obstruction even if you were technicaly following outdated SBA guidance. Whether that charge sticks is a diffrent question then wheather it gets filed.

The records you shred could become the crime that convicts you. Not the original PPP fraud—the destruction of evidence. You turned questionable conduct into definite misconduct by destroying documentation. The government dosent have to prove you committed fraud if they can prove you destroyed evidence of fraud.

Think about this from the prosecutors perspective. You got a PPP loan in 2020. You filed for forgiveness in 2021. In 2027, you shredded all your records becuase the SBA said 6 years. In 2029, the government opens an investigation. They subpoena your records. You say “I dont have them—I destroyed them following SBA guidance.” Now they have a new angle. Why did you destroy records for a loan that might have been fraudulent? Your following of official guidance becomes evidence of consciousness of guilt in there narrative.

Todd Spodek has seen this pattern play out. Clients who thought they were cleaning up old paperwork find themselves explaining why they destroyed evidence. Its not that there guilty of the underlying fraud—sometimes there not. Its that there now defending against obstruction charges on top of having to defend against fraud allegations they cant adequately rebut becuase there records are gone.

Consider the psychological impact of this situation. You recieved a subpoena asking for documents. You have to tell the government you destroyed them. Now every subsquent interaction with prosecutors happens in the shadow of that destruction. They question your motives. They question your credibility. They wonder what else you might have hidden. The innocent act of following official guidance becomes suspicious conduct in there narrative. You look like someone with something to hide—even if you were just trying to declutter your filing cabinets.

The safe harbor problem makes this worse. When the government extended lender retention to 10 years in August 2024, they created safe harbor protections for lenders who had already destroyed records under the old rules. Lenders who followed outdated guidance got protected. There was no equivilent safe harbor for borrowers. If you destroyed records following SBA guidance, you get no protection. The asymmetry is striking and deliberate—lenders are shielded, borrowers are exposed.

Your Lender’s 10-Year File: Everything They’re Keeping

Heres something that should change how you think about this: the scope of what lenders must preserve is comprehensive. Its not just approved loans. Its everything.

Under the August 2024 rule, lenders must keep ALL PPP loan applications—withdrawn, approved, denied, cancelled. ALL PPP lender loan records for loans with outstanding balances. ALL PPP loans that have been forgiven. ALL PPP loans in repayment or paid in full. Everything.

Think about what that actualy includes:

• Your original PPP loan application with all its certifications
• Every bank statement you submitted to support your application
• Every payroll record you provided
• Every tax document you uploaded
• Your forgiveness application with all its certifications
• Every document you submitted for forgiveness review
• Every communication between you and the lender about the loan
• Every certification you signed throughout the process

All of it. Preserved for 10 years. Available to law enforcement upon request. Permanantly accessible to prosecutors building cases against you.

If you submitted false documents for forgiveness—fake payroll records, fabricated bank statements, falsified tax returns—those documents are sitting in your lenders file right now. They’ll be there until at least 2032. Prosecutors can review them at there leisure. They can compare them to IRS records, to state employment records, to any other documentation that contradicts what you submitted.

And heres were it gets really uncomfortable: you probly dont even remember exactly what you submitted. The PPP application process was chaotic. You were moving fast. You were trying to keep your business alive. You probly had help filling out forms. You probly signed things without reading every line. But every document is preserved in that lender file, ready to be used against you.

What Defense Attorneys Need: Records That Prove Your Case

Heres the part people dont think about until its too late: records arent just for documenting what you did. Records are for proving what you DIDNT do. There your only defense against the governments interpretation of your lenders file.

When defense attorneys review PPP cases, the first thing they need is complete loan documentation. Not becuase they dont trust you—becuase they need to rebut the governments evidence. The prosecution will have your lenders file. They’ll have every document you submitted. They’ll have there own interpretation of what those documents show. Without your own records, you cant contradict them.

Think about the specific situations were records matter:

Payroll Documentation: The government claims you didnt have employees. Your records show you did—W-2s, tax filings, bank statements showing payroll deposits. Without those records, you have only your word against there documents.

Fund Usage: The government claims you spent PPP money on personal expenses. Your records show legitimate business purchases—invoices, receipts, bank statements proving compliant usage. Without those records, the governments interpretation stands unchallenged.

Business Operation: The government claims your business wasnt operational. Your records show customers, sales, actual business activity. Without those records, you cant prove you were a real business.

Certification Accuracy: The government claims your certifications were false. Your records show the certifications were accurate based on information available at the time. Without those records, you cant demonstrate good faith.

At Spodek Law Group, we tell clients something uncomfortable: we cant help you if you dont have records. The prosecution will have your lenders file. They’ll have every document you submitted. We need to be able to compare your records to there records, to identify discrepencies, to explain context, to demonstrate that what looks like fraud was actualy honest mistakes or legitimate business decisions. Without your documentation, were fighting with one hand tied behind our back.

Your lender has 10-year retention—they’ll have every document you submitted, even if you shredded yours. The question isnt wheather the government has evidence. The question is wheather you have evidence to rebut it.

The Records You Must Keep Through 2032

OK so what should you actualy keep? The answer is simpler then the rest of this analysis: keep everything related to your PPP loan for 10 years from your last act, not 6 years.

Original Loan Application Materials:

• Your completed PPP loan application
• All certifications you signed
• Supporting documentation you provided (payroll records, tax returns, bank statements)
• Any correspondence with your lender during the application process

Forgiveness Application Materials:

• Your completed forgiveness application
• All certifications you signed for forgiveness
• Documentation proving fund usage (payroll records, rent payments, utility payments)
• Bank statements covering the covered period
• Any correspondence with your lender during forgiveness review

Ongoing Business Records:

• Tax returns for 2019, 2020, 2021, 2022
• Payroll records for the entire covered period
• Employee records (W-2s, 1099s, employment contracts)
• Bank statements showing fund usage
• Invoices and receipts for eligible expenses

Communications:

• Emails with your lender
• Letters from SBA
• Any correspondence about your loan or forgiveness

The math is absolutly straightforward. If you filed for forgiveness in late 2021, your exposure runs until late 2031. If you filed in 2022, your exposure runs until 2032. Keep your records for the full 10-year window from that forgiveness date, not 6 years from whenever the SBA says.

Heres the practcal advice: dont rely on electronic records alone. Cloud storage can fail. Email accounts can be closed. Companies can delete old data. Keep physical copies of critical documents in a safe place. Keep multiple copies. Assume you’ll need to produce these records a decade from now.

The storage isnt that complicated. A single filing box can hold everything related to your PPP loan. Put it somewhere safe—a fireproof safe, a safety deposit box, your attorneys office. Label it clearly. Dont touch it until at least 2032 at the earliest. The inconvience of storing one box is infinatly better then the catastrophy of not having records when you need them.

And think about what happens if you eventualy need these records. Maybe the government investigates. Maybe you get audited. Maybe someone accuses you of fraud and you need to defend yourself in civil litigation. Maybe a buisness partner claims you misused company funds. There are dozens of scenarios were having complete PPP documentation could matter—and most of them you cant predict today.

The people who get destroyed are the ones who assumed there exposure ended and acted accordingly. They shredded records. They deleted emails. They threw away bank statements. They did exactly what the government told them they could do after 6 years. And then they discovered the 4-year gap—the window were the government has evidence and they have nothing.

Dont be one of those people. The offical guidance is dangerously outdated. The statute of limitations is 10 years. The lenders have 10-year retention. Your records need to match. Anything less creates asymmetry that works against you.

And heres the final uncomfortable truth: the diffrence between following outdated 6-year guidance and keeping records for 10 years could be the diffrence between proving your innocence and going to federal prison. The storage cost is minimal. The consequences of not having records are potentialy catastrophic. You might never need those documents. But if you do need them and dont have them, nothing else will matter.

If you have questions about PPP record retention or your potential exposure, call Spodek Law Group at 212-300-5196. The government kept there records. You should keep yours. And if your not sure what you still have or what you need, we can help you figure out exactly where you stand before the government does it for you.