How to Respond to a Federal Subpoena for EIDL Loan Records

Thanks for visiting Spodek Law Group. We’re a second-generation law firm managed by Todd Spodek, with over 40 years of combined experience in federal criminal defense. If you’ve received a federal subpoena demanding your EIDL loan records, you’re in the middle of a criminal investigation – and how you respond determines whether you face charges, what evidence prosecutors have against you, and whether you inadvertently provide information that destroys your defense.

This article explains what federal subpoenas are, what mistakes people make when responding, and how to protect your rights while complying with legal obligations.

What a Federal Subpoena Means

A federal subpoena is a legal order compelling you to produce documents or testify. In EIDL fraud investigations, subpoenas typically demand business records, bank statements, tax returns, payroll documentation, and communications related to your loan application.

Subpoenas come in two forms. A subpoena duces tecum orders you to produce documents. A subpoena ad testificandum orders you to provide testimony – usually before a grand jury. Both types are legally binding. Ignoring a subpoena is contempt of court, which carries fines and jail time.

The DOJ uses grand jury subpoenas to gather evidence in EIDL fraud investigations. They’re investigating whether you made false statements on your loan application, whether you qualified for the loan amount you received, and whether you used the funds for authorized purposes. Congress extended the statute of limitations for COVID-19 loan fraud to 10 years – so investigations are ongoing in 2025 and will continue for years.

Don’t Respond Without Legal Representation

The worst mistake you can make is responding to a federal subpoena on your own. People think they can just gather the requested documents and send them to the government. That’s wrong for several reasons.

First, you might be producing documents that incriminate you. An email where you discussed your EIDL application with your accountant. A text message where you talked about employee counts or business revenue. Bank records showing you used EIDL funds for personal expenses. Once you hand over these documents, prosecutors use them to build criminal charges against you.

Second, incomplete or inaccurate responses create additional legal problems. If you can’t find certain documents, if your records are disorganized, if there are gaps in your documentation – prosecutors will argue you’re hiding evidence or that you destroyed documents. That’s obstruction of justice, a separate federal crime.

Third, you might be waiving legal protections. Some documents are protected by attorney-client privilege or work product doctrine. If you produce privileged documents without asserting protections, you’ve waived the privilege – and prosecutors can use those documents against you.

At Spodek Law Group, we handle all subpoena responses for our clients. We review what’s being requested, we determine what documents you actually have to produce, we assert applicable privileges, and we manage the production process to minimize your criminal exposure.

Understanding the Scope of the Subpoena

Federal subpoenas in EIDL fraud cases are typically broad. They request “all documents related to” your loan application, which could include hundreds or thousands of records. But we review the subpoena language to determine exactly what’s required. Some requests are overly broad or unreasonably burdensome. We negotiate with prosecutors to narrow the scope, clarify terms, or limit the time period.

Assertion of Privileges

Certain documents don’t have to be produced. Attorney-client communications are privileged. Documents prepared by your attorney in anticipation of litigation are protected work product. Your Fifth Amendment right against self-incrimination might protect certain personal records.

We create a privilege log and assert protections properly. If prosecutors challenge our privilege assertions, we litigate those disputes before you produce anything.

The Production Process

Once we’ve determined what documents you have to produce, we manage the actual production. Federal prosecutors want documents organized, labeled, and produced in a format they can review.

We organize documents by category – loan application materials, bank records, tax returns, payroll records. We create a production index. We label documents with Bates numbers for reference.

We also review every document before production. Sometimes we find problems – documents that contradict your loan application, records showing unauthorized use of funds, communications suggesting knowledge of fraud. When we identify these issues early, we can develop defense strategies before prosecutors build their case.

Testifying Before a Grand Jury

If you receive a subpoena to testify before a grand jury, the stakes are even higher. Grand jury testimony is under oath. Anything you say can be used against you in a criminal prosecution. And if your testimony conflicts with documents or other witness statements, you face perjury charges.

You have a Fifth Amendment right to refuse to answer questions if your answers would incriminate you. But asserting the Fifth Amendment in front of a grand jury is complicated. You can’t refuse to show up. You can’t refuse to be sworn in. You can only refuse to answer specific questions after they’re asked.

At Spodek Law Group, we prepare clients extensively before grand jury testimony. We review the evidence prosecutors likely have, we identify questions they’re likely to ask, we determine which questions you can safely answer and which questions require Fifth Amendment assertions. And we’re available by phone during your testimony so you can consult with us before answering difficult questions.

What Happens After You Respond

Responding to a subpoena doesn’t end the investigation. Prosecutors review the documents, compare them to other evidence, and decide whether to file criminal charges.

If your documents contradict your EIDL application – you claimed 10 employees but payroll records show 6, you reported $200,000 in revenue but tax returns show $100,000 – prosecutors will likely pursue charges. Wire fraud, bank fraud, making false statements to financial institutions under 18 USC 1014. Each charge carries up to 30 years in federal prison.

If your documents show you misused the funds, prosecutors might still pursue charges. EIDL funds are supposed to be used for working capital and normal operating expenses. Using them for personal expenses or non-business activities violates federal law.

Record Retention Requirements

EIDL loan borrowers must maintain business records for the most recent five years until three years after loan maturity or full repayment. If you’ve destroyed records within this retention period, prosecutors argue that shows consciousness of guilt or obstruction.

If you don’t have all requested records, we explain why in our response. The reason matters – and how we present it matters even more.

Why You Need Spodek Law Group

We represent clients in federal fraud investigations across the country. Todd Spodek is a second-generation criminal defense attorney who grew up working in his father’s law firm and has handled hundreds of federal cases. We represented Anna Delvey in the case that became a Netflix series. We handled the Ghislaine Maxwell juror misconduct matter.

Our team includes former federal prosecutors who know exactly how DOJ attorneys build fraud cases. They understand what evidence prosecutors need to convict, what weaknesses exist in the government’s case, and how to present information that protects rather than incriminates our clients.

If you’ve received a federal subpoena for your EIDL loan records, contact us immediately. We’re available 24/7. Don’t try to handle this alone – your freedom depends on getting this right.