PPP Fraud Statute of Limitations: What Changed in 2022 and What It Means for You

If you applied for a PPP loan in 2020 or 2021 and youre worried about what you put on that application, youve probly been counting the years. Five years from 2020 is 2025. Five years from 2021 is 2026. Maybe youve been telling yourself that once those dates pass, youre in the clear.

Then you heard about the 2022 law change. And now youre wondering: did they really extend the statute of limitations to 10 years? Does that apply to me? Am I really going to be looking over my shoulder until 2030 or beyond?

At Spodek Law Group, weve been fielding these questions constantly since the law changed. Todd Spodek has handled numerous PPP fraud cases, and heres what we tell clients: the 2022 changes are more complicated than the headlines suggest. The new law creates both new risks AND new legal questions that havent been fully resolved.

Our mission is to help you understand exactly where you stand - not based on fear and rumors, but based on actual legal analysis of what the 2022 changes mean for your specific situation.

What Actually Changed in 2022

In August 2022, Congress passed and President Biden signed the COVID-19 EIDL Fraud Statute of Limitations Act. Thats a mouthful, so lets break down what it actually does.

The law extended the statute of limitations for certain COVID relief program fraud from 5 years to 10 years. It covers PPP loans, EIDL loans, and other pandemic relief programs.

OK so that sounds straightforward. If you committed fraud in 2020, the government now has until 2030 instead of 2025 to charge you. Right?

Heres the thing though. Its not that simple.

The law specifically applies to violations of several federal statutes, including 18 USC 1014 (false statements to a financial institution) and certain provisions of Title 15 related to SBA loan programs. But not every PPP fraud charge uses those statutes.

Wire fraud, which is charged in many PPP cases, still has a 5-year statute of limitations. Bank fraud has a 10-year statute that existed before the 2022 law. Money laundering charges have their own timelines.

So the first question for anyone worried about PPP fraud exposure is: what specific charges could you face? And which statutes would those charges fall under?

The Retroactivity Question Nobody Wants to Address

Heres where things get legally interesting - and potentially very important for people who committed fraud before August 2022.

The law says it applies to offenses "committed before, on, or after the date of enactment." That language was intentional. Congress wanted to make clear the extended statute applies even to fraud that happened back in 2020.

But theres a constitutional principle that raises questions about this. Generally, laws that increase punishment or extend prosecution timelines cant be applied retroactively. Thats called the ex post facto clause of the Constitution.

Now, courts have traditionally held that statute of limitations extensions are different from punishment increases. Some courts have allowed retroactive extensions when the original statute hadnt expired yet. But the legal doctrine is complicated, and not every circuit has ruled on the specific 2022 COVID fraud statute.

What does this mean for you? If you committed PPP fraud in 2020 and the government tries to charge you in 2028 under the extended 10-year statute, there may be a constitutional challenge available. We dont know yet how courts will rule on these challenges becuase most of them havent been brought yet.

This is genuinley unsettled law. And unsettled law creates both risk and opportunity.

When Does the Clock Actually Start?

Even if the 10-year statute applies to your situation, theres another question that matters enormously: when did the clock start running?

Most people assume it started when they submitted their PPP application. And for some charges, thats right. But for others, the timeline is different.

If you applied for loan forgiveness and made false statements on that application, the clock might start from the forgiveness application date - not the original loan application. For many people, thats 2021 or even later.

If the fraud involved multiple false statements over time - say, monthly reports or periodic certifications - the statute might not start until the LAST fraudulent statement. Thats called a "continuing offense" theory, and prosecutors use it to extend their window.

If you engaged in money laundering by moving the fraudulently obtained funds, each movement could be a separate offense with its own timeline.

The point is that "when did the statute start" isnt always obvious. And getting it wrong - either direction - can lead to serious miscalculations about your exposure.

Different Statutes, Different Timelines

Lets get specific about what different charges actually mean for statute of limitations:

Wire Fraud (18 USC 1343): Still 5 years. If you submitted your PPP application electronically (which almost everyone did), wire fraud applies. But the 2022 law didnt change the wire fraud statute of limitations.

Bank Fraud (18 USC 1344): 10 years. This existed before the 2022 changes. If you made false statements to a bank to obtain PPP funds, bank fraud charges can be brought for 10 years.

False Statements to SBA (15 USC 645): Now 10 years under the 2022 law. This is the statute the 2022 changes directly affected.

False Statements to Financial Institutions (18 USC 1014): Now 10 years under the 2022 law.

Money Laundering (18 USC 1956): 5 years from each transaction. But if the underlying offense has a longer statute, prosecutors can sometimes use that to extend their window.

Why does this matter? Because prosecutors choose which charges to bring. If the easy charges (like wire fraud) are about to expire but bank fraud charges are still viable, they may shift their charging strategy. Understanding this helps you anticipate what youre actually facing.

The Civil vs Criminal Distinction

Most people focus on criminal charges, but the SBA also pursues civil recovery. These have different timelines and different rules.

The SBA can seek civil recovery of fraudulently obtained funds through administrative actions that have their own deadlines. These civil cases have lower burdens of proof than criminal cases - they only need to show fraud is "more likely than not," not "beyond a reasonable doubt."

So even if criminal statute of limitations expire, you might still face civil actions to recover the funds. And civil judgments can lead to wage garnishment, asset seizure, and damaged credit that follows you for years.

This is why "waiting out the statute" isnt always a viable strategy. The criminal clock and the civil clock run separately.

What the Government Is Actually Doing

Based on what weve seen at Spodek Law Group, heres how the government is approaching PPP fraud cases post-2022:

Theyre prioritizing larger cases first. If you got $20,000 fraudulently, youre lower priority than someone who got $2 million. But lower priority isnt no priority - theyre working through cases systematically.

Theyre using data analytics to identify fraud. The SBA has sophisticated systems comparing applications against tax records, business filings, and other data sources. The extended statute gives them more time to run these analyses.

Theyre leveraging cooperation. When they catch someone, they pressure that person to identify others who committed similar fraud. This creates ripple effects where one arrest leads to multiple investigations.

Theyre building cases carefully. The extended statute means prosecutors dont have to rush. They can wait for better evidence, more witnesses, more cooperation before bringing charges.

What You Should Actually Do

If youre worried about PPP fraud exposure, heres what we recommend at Spodek Law Group:

Dont assume the statute has run or will run soon. Calculate your actual exposure based on which specific statutes might apply, when the clock started for each potential charge, and whether the 2022 extensions apply.

Get a legal assessment now. The question of whether youre at risk isnt one you can answer by Googling. It requires analyzing your specific situation, the specific claims you made, and the specific timeline of events.

Consider your options carefully. Some people benefit from voluntary disclosure before being caught. Others are better served by waiting to see if the government ever investigates. This isnt a decision to make based on fear - its a strategic calculation.

Preserve relevant documents. Whatever happens, having your records organized and accessible will help your defense. Dont destroy anything - that can be a separate crime. But do know where everything is.

Dont talk to investigators without counsel. If federal agents contact you, you have the right to have an attorney present. Use that right.

The Legal Questions Still Being Decided

Heres what makes the post-2022 landscape genuinely uncertain:

Courts havent fully ruled on the retroactivity question. The constitutional challenge to applying the extended statute to pre-2022 conduct hasnt been definitively resolved. Early court decisions will set precedent.

The interaction between different statutes creates complexity. When prosecutors can charge under multiple statutes with different timelines, strategic questions arise about which charges are valid and when.

Discovery rule application is unsettled. When exactly did the government "discover" any particular fraud? This can affect when the clock started.

What this means is that if youre charged in 2027 for conduct from 2020, there may be serious legal defenses based on statute of limitations that dont exist for someone charged in 2024. The law is still developing.

Dont Make Decisions Based on Fear

Weve seen people make terrible decisions becuase they panicked about the statute of limitations extension. They talked to investigators without lawyers. They made incriminating statements trying to explain themselves. They destroyed documents thinking that would help.

All of those decisions made their situations worse.

The extended statute of limitations is a factor to understand, not a reason to panic. Many people who committed minor PPP fraud will never be investigated. The government simply dosent have resources to pursue every case. But if you are investigated, your previous decisions matter enormously.

At Spodek Law Group, Todd Spodek and our team have guided clients through exactly this type of uncertainty. We help you understand your actual exposure, evaluate your real options, and make strategic decisions based on clear analysis rather than fear.

If youre concerned about PPP fraud exposure and want to understand what the 2022 statute of limitations changes mean for your specific situation, call us at 212-300-5196. The extended statute means theres more time - for the government to investigate, but also for you to prepare a proper defense.

Becuase the worst thing you can do is nothing. And the second worst thing is panicking into bad decisions. What you need is informed, strategic action based on how the law actually applies to you.