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COVID-19 Exploitation of Small Business Loans

Small Business Loans

In response to the pandemic, Congress recently passed the Coronavirus Aid Relief and Economic Security (CARES) Act.

Importantly, the CARES Act contained the Paycheck Protection Program (PPP). That loan program was intended to offer relief to small businesses, primarily to keep employees on payroll and cover other important expenses.

The growing consensus is that opportunistic banks, gave “big-business” preferential treatment. The scenario involved unethical conduct by these banks, fueled by their own financial motivation, as they, “pushed through” the applications of big businesses for their own gain.

By giving the “big business” loan applicants an inappropriate and improper preference, the banks deprived millions and millions of legitimate small businesses the government loans that were specifically intended for them. Congress acted to support the struggling businesses, but the funds never reached them. The unintended recipients – the banks and big business – profited.

These loans were “forgivable,” meaning that if the loan money was used for the purposes specified by Congress, the debt was deemed forgiven and the loan would never be repaid.

This unprecedented program was enacted to help save the millions of businesses that could not sustain the financial hardship created by the gravity of losses caused by a world-wide pandemic.

Being locked out of the loan money, many of these businesses, already months behind in rent, payroll, and other expenses, have gone under. Others continue to try to hold on, waiting for the second round of loans. They may survive … but they may not. Even those that do survive, and perhaps eventually obtain loans in second round still suffered losses caused by the delay.

We Can Help

Our Denver personal injury attorneys are pioneering the efforts to compensate all Coloradans who applied for these loans, but were told that the money was gone.

If you applied for a government loan, and have or can obtain proof of your loan application, please fill out the information in this form and we will contact you and discuss your options.