First DOJ Enforcement Action Against PPP Lender Presages Increased Government Scrutiny of Bank and Non-Bank PPP Lenders

Until last month, government enforcement and regulatory scrutiny of fraud and other misconduct relating to COVID-19 relief programs was generally limited to end recipients of the relief. These efforts have mostly been directed to fraud in connection with the Paycheck Protection Program (PPP), a nearly $1 trillion business loan program administered by the Small Business Administration (SBA), which allowed entities to apply for low-interest private loans to pay for their payroll and certain other costs.…