Unethical Uses of PPP Funds
Since the Paycheck Protection Program (PPP) was passed by Congress, business owners have received significant amounts of funding to keep their business afloat during the pandemic. However, there have been cases where the funds were misused for personal gain or leisure. A man in Florida who owned a moving business in South Florida received PPP loan for his business, but the first thing he bought was a Lamborghini for himself!
This business owner claimed that he had four moving businesses and applied for seven SBA loans and were approved for loans totaling to $3,984,557, which were supposed to be for payroll, rent, utilities but in reality, he paid his employees pennies. This business owner will most likely face jail time and no loan forgiveness from these loans! There have been growing fraud cases around the country of business owners misusing funds from PPP loans.
These are a few examples of unethical uses of PPP funds. If you have questions on how to get loan forgiveness or more, please call us at (832) 295-3353. You may also set up an appointment with us at https://xqcpa-bookme.acuityscheduling.com/schedule.php.