Home / Navigating Uncertainty / Legal risks associated with PPP loan applications.

Legal risks associated with PPP loan applications.

three shapes

About this panel.

In this follow-up to our CARES Act session, we will hear from Annie Railton, Partner, Goodwin Law, who specializes in white-collar criminal defense, and government civil investigations and enforcement proceedings. Thejo Kote CEO, Airbase, will moderate the session which will consider the legal risks associated with companies applying for loans under the CARES Act.

The Payroll Protection Program raises important legal questions for companies that have applied for funds, even those that may have returned funds or are planning to repay them. Our panelist will provide important insight into the False Claims Act and how it is used to bring cases against companies that accept government funds outside of full compliance.

For companies that have applied for PPP government funds or are considering doing so, there are ways to prepare for long term exposure to legal scrutiny. We will discuss how legal liability is created for individuals, company management, board members, and even investors when an application is made and what can be done to mitigate that risk.

We will also cover the additional clarity being provided by the SBA around the interpretation of “necessity” and their decision to extend the safe harbor period for PPP applicants to return funds. Our expert will describe the incentives and landscape for oversight by various entities, including the Department of Justice, CARES Act oversight bodies, and whistleblowers.

What you’ll learn:

  • What the False Claims Act is and how it applies to PPP loans.
  • The current understanding of the standard for “necessity”.
  • How applying for PPP loans creates legal risk.
  • Who is at risk from legal action.
  • How, when, and by whom legal claims are brought against a company.
  • What companies can do to prepare for legal scrutiny.
  • What companies can do to mitigate legal risk associated with a PPP application.

About the speakers.

Anne Railton

Anne Railton

Partner at Goodwill Law

Anne Railton focuses her practice on white-collar criminal defense, government civil investigations and enforcement proceedings, internal investigations, and complex commercial litigation. Her representations include criminal and civil matters related to healthcare fraud, bribery and kickbacks, False Claims Act violations, securities fraud, insider trading, and tax fraud. Ms. Railton also provides regulatory compliance counseling and advises companies on the development and implementation of appropriate risk management policies and procedures, including those related to healthcare compliance, the False Claims Act, and insider trading.

Darcie Lamond

Darcie Lamond

Director of Brand at Airbase

Darcie Lamond is Director of Brand at Airbase, responsible for content creation and messaging, and has 25 years of experience in finance and marketing. She began her career in the Treasury Department at Bank of America, focused on capital markets transactions. Her time in banking included a Senior VP role heading the marketing and trading of currency and interest rate derivative products globally for First Chicago (now Chase). She served as Partner, CSO, and CFO for a marketing agency, giving her hands-on experience in day-to-day operations and managing the company’s finance and accounting.

Learn how the leading Spend Management Platform can help your company scale.

lines with ball