If you applied for a PPP loan based on the promise of loan forgiveness, you may have been misled. Some banks instructed business owners to include all worker payroll expenses to calculate the business’ loan eligibility, including W-2 and 1099 workers. However, payroll expenses for 1099 Workers were not eligible to be used to calculate a business’ PPP loan eligibility and are not eligible for loan forgiveness.
FBFG has recovered tens of millions of dollars for businesses and consumers and we are investigating whether banks led businesses to believe they were eligible for loan forgiveness for payroll expenses for 1099 workers, when in fact they were not. If you or a business you know applied for a PPP loan and were instructed to include 1099 workers’ expenses, please contact us to discuss your legal options.