What’s the Difference Between PPP and EIDL Fraud Charges? Both Send You to Prison But EIDL Is WORSE!

What’s the Difference Between PPP and EIDL Fraud Charges? Both Send You to Prison But EIDL Is WORSE!

So your probably thinking PPP and EIDL fraud charges are basically the same thing since they’re both pandemic loans.

Maybe you figure PPP fraud is worse because it was forgivable “free money.”

Or maybe your hoping EIDL fraud carries lighter penalties since you had to pay it back anyway.

Look, we get it. They both came from the SBA during COVID so they seem similar.

But here’s the absolutely shocking truth – EIDL fraud can get you THIRTY YEARS in prison while PPP maxes at twenty!

THIRTY YEARS!

And prosecutors? There stacking BOTH charges to destroy you completely!

What’s the Basic Difference?

PPP was FORGIVABLE if used properly – EIDL was ALWAYS a loan!

Always!

The Paycheck Protection Program? Designed to be forgiven if you kept employees. Used funds for payroll, rent, utilities.

EIDL (Economic Injury Disaster Loans)?

NEVER forgivable.

Never.

Always required full repayment over 30 years!

But fraud makes forgiveness IRRELEVANT!

Commit PPP fraud?

No forgiveness – you owe everything!

EIDL fraud?

You owe the loan PLUS penalties!

(Yeah, PLUS penalties. On top of everything else.)

The Small Business Administration treats both as stealing government money. Regardless of forgiveness provisions!

The fraud amounts are STAGGERING!

SBA Inspector General found $79 BILLION in potentially fraudulent EIDL loans.

$79 BILLION!

PPP fraud? Only $4.5 billion.

EIDL fraud is 17 TIMES bigger!

Seventeen. Times. Bigger.

Prosecutors are MORE aggressive on EIDL. Why? The losses are astronomical!

What About Maximum Penalties?

EIDL fraud under 18 U.S.C. § 1014 carries THIRTY YEARS maximum!

Thirty.

Years.

Making false statements to SBA for EIDL loans? That’s 30 years potential prison PER COUNT!

Per count!

Plus $1 million fines!

The statute specifically targets SBA loan fraud. With devastating penalties!

PPP fraud typically prosecuted as wire fraud – “only” TWENTY years!

(Only twenty. As if that’s better.)

Under 18 U.S.C. § 1343, PPP fraud through online applications is wire fraud.

Maximum 20 years per count.

Still devastating!

But 10 years LESS than EIDL fraud potential!

The Department of Justice often charges BOTH for maximum impact!

Got PPP and EIDL for same business?

That’s multiple counts under different statutes!

Stack 30 years for EIDL.
Plus 20 for PPP.
Plus conspiracy charges.

Potential life sentence!

Life!

What About the Advance Portions?

EIDL Advances were “forgivable” but fraud still brings DECADES! Original EIDL Advance up to $10,000, Targeted Advance $10,000, Supplemental $5,000 – total $25,000 in “grants.” But fraudulent advances still prosecuted as theft of government funds!

PPP had no separate advance program – all or nothing! Either your entire PPP loan was forgiven or it wasn’t. No partial forgiveness, no advance portions. Simpler structure but fraud meant losing everything!

Prosecutors treat advance fraud as AGGRAVATED because it was meant for desperate businesses! Those advances were for truly struggling companies. Lying to get “free” advance money? Judges impose MAXIMUM sentences for stealing emergency aid!

How Long Can They Prosecute?

TEN YEARS for both – they have until 2030-2031! Congress passed the “COVID-19 EIDL Fraud Statute of Limitations Act” and “PPP and Bank Fraud Enforcement Harmonization Act” – both extending prosecution to 10 years! Your not safe until 2031!

But EIDL investigations are MORE complex and thorough! EIDL loans lasted 30 years with ongoing monitoring. More documentation, longer paper trail, continued SBA oversight. PPP was mostly one-and-done. EIDL fraud easier to prove!

The SBA Office of Inspector General prioritizes EIDL fraud! With $79 billion in suspicious EIDL loans versus $4.5 billion PPP, resources focus on bigger problem. EIDL fraudsters face more aggressive investigation and prosecution!

What’s Different About the Application Process?

EIDL applications required MORE false statements! Credit checks, detailed financials, tax returns, business history. Each false answer is separate count! PPP was simpler – mainly payroll calculations. Fewer lies needed but still prosecuted!

EIDL allowed multiple draws increasing fraud exposure! Initial EIDL, then increases, then supplemental funding. Each application is separate fraud! PPP had first and second draw only. Less opportunities for multiple frauds!

EIDL fraud often includes identity theft charges! Used someone else’s SSN for credit check? Aggravated identity theft – mandatory 2 years consecutive! PPP fraud less likely to involve identity theft unless fake employees created!

Can You Get Both Types of Fraud Charges?

YES! Most fraudsters got BOTH loans and face BOTH prosecutions! Same business applied for PPP and EIDL? Double the fraud charges! Prosecutors love defendants who committed multiple frauds – shows pattern of deception!

Using PPP and EIDL funds together creates money laundering charges! Commingled PPP and EIDL in same account? That’s money laundering adding 20 MORE years! Moving funds between loans? More laundering! The charges multiply exponentially!

The Criminal Division coordinates multi-loan prosecutions! PPP fraud in April 2020, EIDL fraud in June 2020? They connect the dots! Pattern of pandemic fraud across multiple programs demonstrates criminal intent!

What About Bankruptcy?

NEITHER PPP nor EIDL fraud debts are dischargeable! Fraudulently obtained debts CANNOT be eliminated in bankruptcy! PPP forgiveness denied? You owe forever! EIDL obtained by fraud? Non-dischargeable debt! Bankruptcy provides ZERO relief!

But EIDL fraud creates LARGER non-dischargeable debts! EIDL loans up to $2 million versus PPP maximum around $10 million but most PPP under $150,000. EIDL fraud often means bigger permanent debt crushing you forever!

Attempting bankruptcy with fraud debts adds MORE charges! Try to discharge fraudulent pandemic loans? That’s bankruptcy fraud! Another 5 years prison! Your attempt to escape makes everything catastrophically worse!

How Do Sentences Compare?

EIDL fraud sentences are trending HARSHER than PPP! Judges view EIDL fraud as worse because loans required repayment anyway. “You committed fraud for money you had to pay back?” No sympathy! Maximum sentences!

The 30-year maximum for EIDL creates higher guidelines ranges! Sentencing guidelines calculate based on statutory maximum. Higher maximum means higher guidelines. EIDL defendants face longer presumptive sentences!

Recent 2024-2025 cases show the difference! PPP fraudsters getting 2-5 years for $200,000 fraud. EIDL fraudsters getting 5-10 years for similar amounts! The loan type affects judicial attitudes!

What About Restitution?

EIDL restitution includes 30 YEARS of interest! Those 30-year loan terms mean calculating interest over three decades! $100,000 EIDL fraud becomes $200,000+ with interest! PPP had minimal interest making restitution lower!

PPP restitution might be reduced by legitimate use! Proved you used some PPP funds for actual payroll? Restitution reduced! EIDL was a loan regardless of use – you owe EVERYTHING plus interest plus penalties!

The U.S. Sentencing Commission treats EIDL losses as higher! Loss calculations drive sentences. EIDL fraud losses include loan amount, interest, investigation costs, administrative expenses. Bigger calculated loss equals longer prison!

Which Is Harder to Defend?

EIDL fraud is HARDER to defend – more documentation! Detailed application, credit checks, verification documents, ongoing certifications. More evidence for prosecutors! PPP’s simpler application means fewer smoking guns!

“Good faith” defenses work better for PPP confusion! PPP rules changed constantly, forgiveness unclear. Reasonable confusion defense possible. EIDL was straightforward loan – harder to claim confusion!

EIDL fraud often involves provable lies about established businesses! EIDL required showing pre-COVID revenue, employees, expenses. Historical lies easier to prove! PPP focused on current payroll – more wiggle room!

What If I Got Multiple Loans?

Multiple PPP loans from different lenders is catastrophic! That’s loan stacking – separate fraud charge! Shows intentional scheme! But multiple EIDL loans are WORSE – each increase required new false certifications!

Geographic spread makes everything worse! PPP from California bank, EIDL from Florida? Multi-district prosecution! Different federal districts can BOTH prosecute! Your facing charges coast to coast!

The FBI Financial Crimes unit specializes in multi-loan fraud! They map connections between loans, trace fund flows, identify patterns. Multiple loans trigger enhanced investigation. Your greed created evidence trail!

DOUBLE DISASTER: EIDL = 30 YEARS! PPP = 20 YEARS! Both = LIFE!
$79 billion EIDL fraud gets priority! 10-year prosecution window!
Call 212-300-5196 for defense against BOTH types of charges!

Look, while PPP and EIDL fraud might seem similar, the differences are crucial.

Crucial!

EIDL fraud carries a 30-year maximum. PPP? Only 20 years.

(Only.)

EIDL’s $79 billion in suspicious loans? More aggressive prosecution.

Way more aggressive.

The detailed EIDL applications create more false statement counts. More counts. More charges. More prison.

The 30-year loan terms?

Massive restitution.

With decades of interest.

Decades!

Most fraudsters got BOTH loans.

Both!

Facing stacked charges. Life-destroying sentences.

The forgiveness difference? Irrelevant once fraud is established.

Both debts become non-dischargeable forever.

Forever!

Prosecutors coordinate multi-loan prosecutions. For maximum impact.

The 10-year statute of limitations means your at risk until 2030-2031.

EIDL fraud is harder to defend. More documentation. Less confusion defense.

Don’t assume EIDL is “less serious” because it wasn’t forgivable – judges actually view it as WORSE!

Way worse.

Call us at 212-300-5196 immediately – for defense strategies addressing both PPP and EIDL fraud charges!