It seems like we are receiving new interim rules on this program daily. This one, announced by The SBA, is in reference to the rules regarding Loan Review Decisions.
Let’s remember that the forgiveness portion of the PPP Loan Program starts with your Lender. If we are unhappy with our results, we may then appeal the Lender’s decision. That appeal must occur at The SBA Level with their Office of Hearings and Appeals (OHA).
These appeals are limited to a final written decision from The SBA. The situations that they cover are as follows…
1 – Eligibility for The PPP Loan Program
2 – If you were ineligible for the PPP Loan Amount received or if you used the proceeds in an unauthorized manner
3 – If the amount you put in for forgiveness is either fully or partially denied
4 – If the Lender determines that you are completely ineligible for any loan forgiveness whatsoever
The interim rules specify the content and procedures of the appeals process. The deadline for appeal is the earlier of the borrower’s receipt of a final SBA loan decision or 30days after the lender notifies the borrower of its forgiveness decision. The appeal does not delay or allow the borrower to avoid or delay repayment of the loan.
I have mentioned in the past that we are right in the middle of doing this on several of your loans. Some are going smoothly. Some aren’t. It’s nice to know that we now have an appeals process which is properly laid out if necessary.
Let me leave you with this one thought…
The Justice Department has filed at least 41 criminal complaints at the Federal Level against almost 60 defendants who accounted for $62 Million of The PPP Loan Program. Some of the items mentioned in the suits include Rolex Watches, gambling at The Bellagio, Lamborghinis, Escalades, a Rolls, and much more.
The Inspector General of The SBA has stated that this is just the tip of the iceberg.
The challenge that local officials are now facing is enormous. The SBA Fraud Hotline received 800 calls in 2019. So far, it has already received 42,000 this year. The graft and fraud involved in this program is rather easy to detect. With their ridiculous spending and fabricated records, these lawbreakers are easy to spot.
Closer to home, the owner of an Elgin Restaurant was recently arrested. She received $175,822 in a PPP Loan on a business that was closed. Preliminary bail has been set. The owner is yet to be arraigned.
That’s right. She’s in jail.
My Brothers and Sisters, I’m telling you now. Don’t cock around with this thing. This is as serious as a heart attack.
In many ways, this has become the perfect storm. The well intentioned efforts of our elected officials have paved the way to what might well become some of the largest fraud cases in our history. Everyone wanted to get this aid out the door to the people who needed it the most as quickly as possible. But in expediting a brand new and untested process, they may have opened Pandora’s Box.
Why? Believe it or not, it’s because Federal Investigators generally don’t like being Federal Investigators.
They don’t get paid very much. If they can get their names in the paper by prosecuting a newsworthy defendant, they can then work at the law firm of their choice. They then get paid their current salary times a factor of whatever.
Take this very seriously. Don’t become the next headline, and realize that we are here to help.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. If there is anything that you need, whether you are a current client or not, we stand ready to help. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
www.AccountingSolutionsLtd.com
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773-267-7500
chris@accountingsolutionsltd.com
