Yes. If you received a Paycheck Protection Program (PPP) loan in 2020 or 2021 and made false statements on your application, you can still face federal criminal charges through 2030 or 2031. The statute of limitations you may have been counting on was extended to 10 years in August 2022, and federal prosecutors are not slowing down.

At Bozanic Law, we defend clients throughout the Southern District of Florida facing federal fraud charges, including PPP loan fraud investigations. The government is actively pursuing these cases, and understanding your exposure is the first step toward protecting yourself.

Why Didn’t the Statute of Limitations Expire in 2025?

Many PPP borrowers assumed that the standard five-year statute of limitations for federal wire fraud (18 U.S.C. § 1343) would expire in 2025 for 2020 loans. That assumption was wrong.

In August 2022, President Biden signed two laws that changed the calculation:

• The PPP and Bank Fraud Enforcement Harmonization Act extended the statute of limitations for PPP fraud to 10 years
• The COVID-19 EIDL Fraud Statute of Limitations Act did the same for Economic Injury Disaster Loan (EIDL) fraud

These extensions apply retroactively to loans already issued. Federal courts have upheld the retroactive application because the original five-year statute had not yet expired when Congress passed the extension in 2022. Under Stogner v. California, 539 U.S. 607 (2003), extending a limitations period that has not yet expired is constitutional.

The result: if you received a PPP loan in April 2020, prosecutors have until April 2030 to bring charges. If your loan came in 2021, the window extends to 2031 or later.

What Federal Charges Apply to PPP Fraud?

Federal prosecutors build PPP fraud cases using multiple statutes, often stacking charges to maximize sentencing exposure:

Bank fraud (18 U.S.C. § 1344): Up to 30 years per count. Applies when the PPP loan was processed through a traditional financial institution.

Wire fraud (18 U.S.C. § 1343): Up to 20 years per count. Applies to any use of electronic communications (email, online applications, wire transfers) in connection with the fraudulent scheme.

False statements to the SBA (18 U.S.C. § 1014): Up to 30 years. Applies to false statements on PPP loan applications and forgiveness applications.

Money laundering (18 U.S.C. § 1956): Up to 20 years per count. Applies when loan proceeds were used for personal expenses, investments, or other purposes not covered by the program.

Conspiracy (18 U.S.C. § 371): Up to 5 years. Applied when two or more people participated in the fraudulent scheme.

False Claims Act (31 U.S.C. §§ 3729-3733): Civil liability with treble damages and per-claim penalties. The DOJ reported over $6.8 billion in False Claims Act recoveries in fiscal year 2025, with PPP fraud contributing significantly.

What Conduct Counts as PPP Fraud?

Federal investigators and prosecutors define PPP fraud broadly. The most commonly charged conduct includes:

• Inflating payroll figures to qualify for a larger loan than the business was entitled to receive
• Listing nonexistent employees or “ghost employees” to support inflated payroll numbers
• Submitting falsified tax documents, payroll records, or bank statements with the loan application
• Misrepresenting the nature of the business, including the date of formation, industry, or operating status
• Applying for multiple PPP loans for the same business or for shell companies controlled by the same person
• Using PPP funds for non-permitted purposes such as personal expenses, luxury items, real estate investments, or transferring funds to family members
• Falsifying forgiveness applications by inflating the amount spent on payroll, rent, or utilities
• Failing to maintain documentation required by the SBA to verify use of funds

Even a single false statement on the loan application or forgiveness paperwork can support a federal charge. Prosecutors do not need to prove the entire application was fraudulent. A single material misrepresentation is sufficient.

How Are PPP Fraud Cases Investigated?

Federal investigations into PPP fraud typically involve coordination among multiple agencies, including the FBI, IRS Criminal Investigation Division, SBA Office of Inspector General, and the U.S. Attorney’s Office for the Southern District of Florida. Common investigative methods include:

• Cross-referencing PPP loan data with IRS payroll filings and bank records
• Data mining of publicly available PPP loan information by the DOJ and private whistleblowers
• Subpoenas to financial institutions for account histories
• Cooperating witness statements from business associates, accountants, and loan preparers
• Analysis of how loan proceeds were spent

Is Federal Enforcement Actually Continuing in 2026?

Yes. The DOJ’s COVID-19 Fraud Enforcement Task Force remains active. Enforcement is accelerating, not winding down. In January 2026, the DOJ announced that False Claims Act recoveries reached their highest annual total in the statute’s history.

Recent federal prosecutions demonstrate the scope and seriousness of ongoing enforcement:

• Loan preparers who filed fraudulent applications on behalf of multiple borrowers
• Business owners who inflated payroll numbers or fabricated employees
• Individuals who used PPP funds for personal expenses such as luxury goods, real estate, and vehicles
• Family networks that filed multiple coordinated fraudulent applications
• Individuals who submitted false forgiveness applications, creating additional criminal exposure

Does Loan Forgiveness Protect You from Criminal Charges?

No. SBA loan forgiveness only addresses the repayment obligation. It does not shield you from criminal prosecution. If you made false statements on either your original loan application or your forgiveness application, each false statement is a separate federal offense.

In fact, submitting a false forgiveness application creates additional criminal exposure with its own statute of limitations period.

If you obtained your loan in April 2020 and applied for forgiveness in late 2021, the limitations period for the forgiveness application runs separately from the limitations period for the original application.

What Are the Signs That You’re Under Investigation?

Federal investigations often proceed quietly for months or years before charges are filed. Warning signs include:

• A subpoena from a grand jury or federal agency requesting financial records
• Contact from an FBI, IRS-CI, or SBA-OIG agent
• A former accountant, loan preparer, or business associate who has been contacted by federal investigators
• A co-borrower or business partner who has been charged or is cooperating with the government

If any of these apply to you, the investigation may already be well underway.

What Should You Do If You’re Under Investigation or Have Been Charged?

Do not speak with federal agents without an attorney. Everything you say will be used against you. Cooperating without legal representation often makes your situation worse.

Preserve all records. Do not destroy any documents related to your PPP loan, business operations, payroll, tax filings, or bank statements. Destroying evidence after learning of an investigation is obstruction of justice, which carries additional criminal penalties.

Consult a federal criminal defense attorney immediately. PPP fraud cases involve complex financial evidence, multi-agency investigations, and severe sentencing exposure. An experienced federal defense attorney can evaluate your exposure, advise on cooperation strategies, and protect your rights throughout the process.

Defending PPP Fraud Cases in the Southern District of Florida

At Bozanic Law, we defend clients facing federal fraud charges, including PPP loan fraud, bank fraud, and wire fraud. We know how federal prosecutors build these cases, what evidence they rely on, and where the vulnerabilities in the government’s case can be found.

If you’re concerned about your PPP loan or are already under investigation, contact Bozanic Law for a confidential consultation.

No Panic, Call Bozanic!