When Does the Statute of Limitations Start for PPP Fraud?

If you found this page, you are probably doing some math in your head right now. You got a PPP loan back in 2020 or 2021, you know there were some problems with it, and you have been counting down to some magic date when you think the danger will finally be over. Maybe you have been telling yourself that five years from when you got the money means you are almost in the clear. Maybe you have been sleeping a little better lately because no FBI agent has knocked on your door yet.

At Spodek Law Group, we have seen this scenario hundreds of times. People come to us convinced they know exactly when their statute runs out, convinced they have done the math correctly, convinced they just need to wait a little longer. And then we have to tell them the truth that changes everything. We represent clients facing the most serious federal charges, and PPP fraud investigations have become a significant part of what we handle.

The calculation you have been doing in your head? It is almost certainly wrong. And not just a little wrong. Wrong in a way that could mean years more exposure than you ever expected. Wrong in a way that could mean the difference between thinking your safe and actualy being safe.

The 10-Year Clock You Didnt Know About

Heres the thing that most people searching this question dont realize. The statute of limitations for PPP fraud is not five years. Its ten years. And that change hapened retroactively, which means it aplies to loans you allready recieved years ago.

In August 2022, Congress passed two laws that fundamentaly changed everything. The PPP and Bank Fraud Enforcement Harmonization Act and the COVID-19 EIDL Fraud Statute of Limitations Act extended the deadline for prosecuting PPP fraud from five years to ten years. President Biden signed both of them. Bipartisan support. No one objeted. Democrats and Republicans agreed on exactly one thing that summer: they wanted more time to prosecute PPP fraud.

Thats not a typo. Ten years.

The reason for this extention is actualy pretty straightforward once you understand the politics. During the pandemic, the government pushed out hundreds of billions of dollars through the PPP program with minimal verification. They knew fraud would be rampant. They just didnt have time to stop it in the moment. So they made a calculation. Get the money out fast, deal with the fraud later. The 10-year statute was there way of making sure later didnt come too late.

If you got your PPP loan in April 2020, you probably thought prosecutors had until April 2025 to charge you. Wrong. They have until April 2030. And if your loan was in 2021, were talking 2031. This isnt speculation or legal theory. This is federal law that applies to every PPP loan ever issued, whether you got it from Bank of America, Chase, Wells Fargo, or some fintech startup like Kabbage or BlueVine.

Heres the part that really matters. Before these laws passed, there was a loophole. If you got your PPP loan from a traditional bank, prosecutors could charge you with bank fraud, which already has a 10-year statute. But if you got your loan from a fintech lender, a company like Kabbage or BlueVine or Cross River, prosecutors could only charge you with wire fraud. Wire fraud has a 5-year statute. That loophole is now completely closed. Dosent matter who issued your loan anymore. Ten years across the board.

But heres were it gets worse. That 2030 date you just calculated? That's probably wrong too.

When Your Clock Actualy Started

Look, I get it. You thought the date was simple. You figured out when the money hit your account, you added ten years, and you marked that date on some mental calendar. That's what most people do. And that's where most people get it completely wrong.

The statute of limitations doesn't start when you received the loan. It starts from the date of your last fraudulent act related to that loan. For a lot of people, that wasn't the loan application. It was something that happened months or even years later.

Read that again. Your last fraudulent act. Not your first.

Federal law is particular about this. The ten-year period runs from whichever is later: the date you received the loan, the date you used the funds, or the date you received forgiveness. Whichever is later. That's the key phrase that changes everything.

Think about what that means practically. If you received your loan in April 2020 but you didn't spend the last dollar until July 2020, your clock might start from July. If you received your loan in April 2020 but you didn't get forgiveness granted until December 2021, your clock definitely starts from December 2021. Every month you delayed, every extra step you took, potentialy pushed your deadline further into the future.

Heres the kicker. Most people didnt just apply for a PPP loan. They also aplied for forgivness. And that forgivness aplication? It was its own separate act. A seperate sworn statement. A seperate opportunity to make false claims. A seperate starting point for the statute of limitations.

The Forgiveness Trap Nobody Explains

The application you submitted for forgiveness? Yeah, that one. It wasnt just paperwork. It was a sworn statement to a federal agency. And if there was anything inaccurate in it, if your payroll numbers didn't quite match reality, if you certified that you used the funds properly when you didn't, that forgiveness application was a brand new crime.

Two crimes. Not one.

You didnt just commit fraud when you aplied for the loan. You committed fraud again when you asked them to forgive it. And your ten-year clock? It started from that second crime, not the first one.

This is something that most people dont understand because nobody explained it to them at the time. When you applied for forgiveness, you signed certifications. You attested that the information was true and accurate. You confirmed that you used the funds for eligible expenses. You swore to all of it. If any of those certifications were false, that's a separate violation. Thats a new false statement. Thats a fresh crime with its own statute of limitations.

Let that sink in. If you submitted your forgivness aplication in January 2022, maybe becuase you put it off or becuase your lender was slow, that January 2022 date is when your clock started. Not April 2020. That means prosecutors have until January 2032 to charge you. Thats two more years of exposure than you thought you had. Two more years of looking over your sholder. Two more years of wondering if today is the day the FBI comes knocking.

Some people didnt apply for forgivness until 2023 or even later. There were backlogs. There were confusing rules about how to document payroll costs. There were lenders who took forever to process anything. If you were one of those people who waited, you have even more exposure than you realize.

This is the trap that catches people who thought they were carefull. They assume becuase they got away with the loan aplication, they got away with everything. But the forgivness aplication was sitting there the whole time, reseting there clock without them even realising it.

And heres another thing nobody talks about. The forgivness aplication required you to make new representations about how you actualy spent the money. That means prosecutors can compare what you said on the forgivness aplication to your actual bank records. If there discrepencies, if the numbers dont match, if you claimed you spent money on payroll when you actualy bought a boat, that forgivness aplication is there smoking gun.

How Someone Elses Actions Could Extend YOUR Deadline

And heres the part that keeps people up at night. Its not just about what you did. Its about what everyone else involved in your loan did too.

Remember that preparer who did your aplication? The one who maybe helped you with the numbers? If they filed other fraudulent aplications after yours, if they submited there last fake PPP aplication in October 2022, guess what. Under federal conspiracy law, there actions extend YOUR deadline.

This is called the last overt act rule. Look it up in the DOJ Justice Manual section 652 if you dont beleive me. When your charged with conspiracy, the statute of limitations dosent run from when you joined the conspiracy. It runs from the last overt act by any conspirator in futhrerance of the conspiracy. That means someone elses actions, someone you might not have even known was commiting fraud, could push your deadline back years.

The conspiracy angle is actually one of the most dangerous parts of PPP fraud exposure that nobody talks about. Prosecutors love conspiracy charges because they let them sweep up multiple defendants in a single case. If they can prove you were part of a scheme, everyone in that scheme faces the same deadline. The last person to do anything extends the clock for everyone.

Think about it. Your business partner who also got a PPP loan? Your accountant who prepared multiple applications? That guy who told you how to fill out the forms? If any of them were part of a conspiracy with you, and if any of them took actions related to that conspiracy after you did, there timeline becomes your timeline.

Their actions. YOUR deadline.

We represented clients who thought they were safe. They did the math, they counted the years, they breathed a sigh of releif. And then they found out that someone they barely remembered, some preparer who filed dozens of other aplications, had extended there exposure by two or three years. Thats not hypotheticle. That hapens. Attorney Todd Spodek has seen this scenario play out more times than he can count.

The Brooklyn case from November 2025 makes this crystal clear. Six family members indicted for conspiring to steal more than $166,000 through fraudulent PPP aplications. The aplications were submitted between April 2021 and October 2022. Which means the statute for all of them runs from October 2032. One family member's late application extended the deadline for everyone. It doesn't matter that some of them submitted their applications in 2021. The whole conspiracy gets judged by the last act.

Here's something else to consider. You might not even know who else was part of the conspiracy. Maybe the preparer who helped you was working with a network of people you never met. Maybe your accountant was running a side business, filing fraudulent applications. There actions could be extending your exposure right now without you even knowing about it.

What the Government Allready Has on You

OK, so at this point you're probably thinking, maybe the statute is longer than I thought, but if they haven't contacted me yet, maybe I'm still under the radar. Maybe they dont know about my loan. Maybe they have bigger fish to fry.

Sorry to break this to you. They already know.

The statute of limitations is just about timing. Its about when they have to file charges. Its not about wheather they have evidence. And heres what the government allready has: Your original PPP loan aplication with every number you submited. Your forgivness aplication with every certification you made. Your bank records showing exactly how you spent the money. Your tax returns from before, during, and after COVID. The comparision between your reported payroll and your actual payroll. The IP address you used when you filed your aplication. The phone number associated with your account.

650 active investigations. Thats the number the Pandemic Response Accountability Committee reported. More than 650 open investigations into PPP and EIDL fraud, with new ones being added every month. And those are just the investigations there publicly tracking. The actual number is almost certanly higher.

The SBA Office of Inspector General has been building a massive database of suspicious loans. They use algorithms to flag aplications that look problematic. Multiple loans to the same address. Loans to businesses that didnt exist before 2020. Payroll numbers that dont match what was reported to the IRS. They cross-reference everything. And once a loan gets flagged, it goes into the queue for investigation.

The banks that approved your loan with minimal verification back in 2020? They are now actively cooperating with federal investigators. The same institutions that rubber-stamped your application because they were drowning in volume and collecting their fees? There trading borrower data for there own immunity from regulatory scruteny. Your lender is not protecting you. There protecting themselves.

Carl Delano Torjagbo of Marietta, Georgia, probably thought he was under the radar too. He got convicted by a federal jury in 2025 for a $9.6 million PPP fraud scheme. His sentencing is scheduled for November 2025. The loan was in 2020. The conviction came five years later. Thats how long these investigations take. The complex cases require years of work. The simple cases get saved for when prosecutors need quick wins before deadlines aproach.

Prosecutors arent worryed about statutes expiring. There building the complex cases first because those take time. The simple cases? There saving those for later. Silence dosent mean your safe. Silence means your in the queue. And the queue is very, very long.

The Warning Signs Most People Miss

Before the knock comes, there are usualy warning signs. Most people miss them becuase they dont know what to look for. Heres what to watch for:

First, any contact from the SBA about your loan. This could be a letter asking for documentation, a request to verify information, or a notice about an audit. The SBA has a six-year audit window for PPP loans. For loans funded in early 2020, that window closes in 2026. For loans funded in mid-2021, it extends to 2027. If the SBA contacts you within that window, it means there looking at your file. Dont ignore it. Dont throw it away. And definately dont respond without talking to a lawyer first.

Second, a grand jury subpoena. If you recieve a subpoena for documents or testimony, that means a federal investigation is allready underway. You are past the preliminary stage at that point. This is not a drill. A grand jury subpoena is serious. It means prosecutors have allready convinced a grand jury there is probable cause to investigate you. This requires immediate legal representation.

Third, contact with anyone else involved in your loan. If your preparer, your accountent, your buisness partner, or anyone else connected to your PPP aplication tells you there being questioned by investigators, assume your next. There building the case piece by piece, and your a piece. When investigators start interviewing people around you, there getting ready to move on you.

Fourth, unusual activity from your bank. Account freezes, requests for transaction history going back to 2020, or notifications that your records have been subpeonaed. Banks comply with law enforcement requests without telling you. By the time you notice something strange, the investigation may have been going on for months.

Fifth, news about your preparer or lender. If the person who helped you file your application gets arrested, if the company you worked with gets raided, if there's a news story about fraud at the institution that approved your loan, pay attention. Investigators work there way outward from the center. They start with the preparers and the ring leaders, and they work there way out to the individual borrowers.

Any of these sound familiar? This is your window. The time between when you first get a warning sign and when you get charged can be anywhere from a few weeks to over a year. Attorney Todd Spodek has seen clients come in at every stage of this process. The ones who come in early, before charges are filed, have vastly more options than the ones who wait until there allready indicted.

What to Do Before the Clock Runs Out

OK so now what. You have read this far. You know the statute is probaly longer than you thought. You know your forgivness aplication may have reset your clock. You know other peoples actions might extend your exposure. You know the government allready has alot of the evidence. What do you actualy do about it?

First, do not panic. Panic leads to bad decisions. Paying back the money without legal advice is a bad decision becuase prosecutors call that consciousness of guilt. It looks like you knew it was wrong. Destroying documents is a horrible decision that creates new crimes. Obstruction of justice carries its own penalties. Talking to investigators without an attorney is a catastrophic decision that can and will be used against you. Everything you say becomes evidence. Dont do any of those things.

Second, gather your records. Find your original PPP loan aplication. Find your forgivness aplication. Find your payroll records from the relevent period. Find your bank statements showing how the money was spent. You need to know exactly what the government would see if they looked at your file. Understanding your exposure requires understanding the evidence.

Third, understand the potential consequences. PPP fraud can be charged under several federal statutes. Bank fraud carries up to 30 years in prison. Wire fraud carries up to 20 years. Money laundering carries up to 20 years. Conspiracy charges can add additional years. These sentences can run consecutively, not concurrently. That means the total exposure can be devastating.

Fourth, and this is the most important step, talk to a lawyer who specializes in federal criminal defense. Not a general practise attorney. Not your business lawyer. Someone who handles these cases specifically. Someone who understands how federal prosecutors think, what there looking for, and how to position you for the best possible outcome.

Spodek Law Group has defended clients facing PPP fraud allegations since these investigations began. We understand the statute of limitations issues, the forgiveness trap, the conspiracy extensions, all of it. We have seen cases at every stage, from the initial SBA inquiry all the way through federal indictment. And we know that the clients who engage early, before their backs are against the wall, have the most options available to them.

The clock is still running. It might be running longer than you thought, but it is running. And the time to act is now, not when the statute is about to expire, not when you receive a subpoena, not when an FBI agent is at your door. Now.

If your reading this and wondering wheather you should be worried, the answer is yes. But worried and prepared is very different from worried and paralyzed.

Call 212-300-5196. The conversation is confidential. Everything you tell us is protected by attorney-client privelege. And understanding exactly were you stand, understanding your real timeline, understanding your real exposure, thats the first step toward protecting yourself and your family.

The statute of limitations is not your friend. Its just a deadline. And now you know when yours actualy starts.