Entrapment-by-Estoppel: A Potential Future Defense for Lenders in PPP Fraud Cases

Despite express promises from the Small Business Administration that lenders participating in the Payment Protection Program may rely on borrower representations, and will not be punished for doing so, there is concern that if the government believes a lender knows or has reason to know that a borrower’s application has misrepresentations, it may still take action against them.