Criminal Defense Lawyers

What Should I Do If My Bank Freezes My PPP Loan Account?

Recent changes were made to the Paycheck Protection Program, or PPP, and it’s important to remain alert to how this can affect your business if you’ve accepted one of these loans. The terms of the loan agreement can affect the business as a whole. For example, the SBA stopped the practice of launching systemic audits against companies that took PPP loans but got less than $2 million in terms of the federal funding.

This change is significant, but many business owners might remain unaware of the facts. This can cause confusion even when the rules of the Treasury Department are clear; changes are frequently unknown even to the beneficiaries. There are still outstanding investigations of PPP fraud that are well beneath $2 million. The change in the audit threshold can understandably remain overlooked in these cases.

Loan Accounts, Investigations and Audits

There are cases where the PPP loan recipient is audited or investigated. This might also lead to having the loan funds frozen, which has a detrimental affect on the organization. This situation is serious, and it should be handled by using skillful methods. The lawyers at our firm have an exceptional level of expertise in this area of the law. We can provide useful advice on all matters related to the PPP loan program, loan forgiveness, audits and investigations.

The recognition that the PPP loan caused an account to freeze also signifies that the loan might be coming under the attention at the federal level. Federal law carries stiff penalties that can adversely affect business owners who remain unaware of these changes. If the PPP loan causes the account to be frozen, it can indicate further problems down the road. Taking care of the issue early can help to alleviate the worst impacts of the situation before it escalates. This is why it’s imperative to have legal assistance to help you navigate this complex situation.

DOJ and SBA Pursuing PPP Loan Fraud Cases

Under the CARES Act, there were many companies who took advantage of the new PPP loan program. This happened in most cases under the circumstances of good faith, and this shouldn’t be overlooked. Business owners who accepted the loan often believed that the terms of the loan would be favorable to their predicament. Losing revenues under the pandemic was devastating on a financial level; the PPP loan money allowed many of these small businesses to remain intact.

Initialization Period of PPP Loans

Christine Twomey

2024-03-21

Just had my Divorce case settled 2 months ago after having a horrible experience with another firm. I couldn’t be happier with Claire Banks and Elizabeth Garvey with their outstanding professionalism in doing so with Spodek Law Group. Any time I needed questions answered they were always prompt in doing so with all my uncertainties after 30 yrs of marriage.I feel from the bottom of my heart you will NOT be disappointed with either one. Thanks a million.

Brendan huisman

2024-03-18

Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!

Guerline Menard

2024-03-18

Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️

Keisha Parris

2024-03-15

Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.

Taïko Beauty

2024-03-15

I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence. Thank you team!

Anthony Williams

2024-03-12

Hey, how you guys doing? Good afternoon my name is Anthony Williams I just want to give a great shout out to the team of. Spodek law group. It is such a honor to use them and to use their assistance through this whole case from start to finish. They did everything that they said they was gonna do and if it ever comes down to it, if I ever have to use them again, hands-down they will be the first law office at the top of my list, thank you guys so much. It was a pleasure having you guys by my side so if you guys ever need them, do not hesitate to pick up the phone and give them a call.

Loveth Okpedo

2024-03-12

Very professional, very transparent, over all a great experience

Bee L

2024-02-28

Amazing experience with Spodek! Very professional lawyers who take your case seriously. They treated me with respect, were always available, and answered any and all questions. They were able to help me very successfully and removed a huge stress. Highly recommend.

divesh patel

2024-02-24

I can't recommend Alex Zhik and Spodek Law Firm highly enough for their exceptional legal representation and personal mentorship. From the moment I engaged their services in October 2022, Alex took the time to understand my case thoroughly and provided guidance every step of the way. Alex's dedication to my case went above and beyond my expectations. His expertise, attention to detail, and commitment to achieving the best possible outcome were evident throughout the entire process. He took the time to mentor me, ensuring I understood the legal complexities involved to make informed decisions. Alex is the kind of guy you would want to have a beer with and has made a meaningful impact on me. I also want to acknowledge Todd Spodek, the leader of the firm, who played a crucial role in my case. His leadership and support bolstered the efforts of Alex, and his involvement highlighted the firm's commitment to excellence. Thanks to Alex Zhik and Todd Spodek, I achieved the outcome I desired, and I am incredibly grateful for their professionalism, expertise, and genuine care. If you're in need of legal representation, look no further than this outstanding team.

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Google rating score: 4.9 of 5, based on 736 reviews

The PPP loan had a funding pool of almost $350 billion; however, this fund was almost instantly depleted. This was the level of economic impact caused by the pandemic. To assume fraud as a default position is an effective insult to the struggles of small business owners who were desperate for some relief. The allegations of fraud should be followed by evidence of some kind. This calls into question the intent of the loan applicant and the terms and conditions of the loan. This loan program essentially opened up all the recipient companies to an unusually high level of scrutiny from the federal government.

Business owners and individuals who took advantage of the PPP loan should be aware of the signs of being under scrutiny for potential fraud:

• Fraudulent claimants tend to stack loans, which means they apply for funding from multiple lenders.
• False statements on the application are illegal; this can trigger an investigation or audit.
• Falsely certifying the PPP loan application is also a form of fraud.
• The PPP loans can only be used for specific business expenses. Examples include utilities, payroll expenses, rent, mortgage interest and other allowable expenses.
• Fraud can be triggered by businesses that use the PPP loan to engage in illegal activities. Example include finance bank fraud and insurance fraud, for example.
• It is an act of fraud to submit a certification for the PPP loan forgiveness if it’s fraudulent.

Frozen Accounts, PPP Loans

Defense strategies can help your organization to survive any allegations of PPP loan fraud. If you are facing these charges, act right away. Get the legal assistance necessary to overcome the allegations of fraud. Even if there are some legitimate cases of fraud, no business owner should accept this allegation as fact. Our lawyers fight to prove that your company complied with the terms of this PPP loan to the best of your ability. It’s also important that you take the charges seriously. Avoid assuming that the case will settle in your favor without mounting a significant legal challenge.

Our legal team offers insights and legal support to each client facing the charges of fraud. The actual position of your company must be analyzed in terms of the documents involved with accepting the PPP loan. The federal agents have the authority to freeze the company’s PPP loan account; however, there are many ways to contest this action. The frozen loan account indicates that there could be a case of fraud. However, this is not conclusive evidence.