To maximize their chances of receiving funding under the Paycheck Protection Program (PPP) business owners have been submitting PPP applications to multiple funding sources. The fear of monies running out combined with the chaos of the program’s roll out was a strong incentive for applicants to hedge their bets with the above strategy.
However, you cannot get more than one loan under PPP. And submitting applications to multiple lenders can trigger a fraud alert because of the above rule. And being accused of fraud will hinder your ability to get any type of loan going forward.
Financial institutions are required to notify law enforcement if they detect fraud, money laundering, terrorist financing, misuse of financial institutions, or other criminal acts. Accordingly, if you chose to incorporate the above strategy and were successful in obtaining financing from one of your sources, it is important to contact the other lenders and immediately withdraw your application.