Congratulations to our friends Bill Livolsi and Richard Bronson on being featured in this article in USA Today. Bill is a member of ourWhite Collar Support Group that meets on Monday evenings. Richard was a recent guest on our podcast, White Collar Week. PS Nice “mug shot” Bill! – Jeff
It’s the Isolation that Destroys Us. The Solution is in Community.
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Podcast Ep. 22, Guest: The Goddess, Babz Rawls Ivy
Today on the podcast we have my dear friend, The Goddess, Babz Rawls Ivy. Many of you know Babz as she is my co-host on our radio show and podcast, Criminal Justice Insider. We are in our fourth season of Criminal Justice Insider, still the only regularly scheduled criminal justice radio program in Connecticut, although we have many national justice-related guests, as well.
Trigger alert: in this episode, we go deep into Babz’s story of childhood abuse and trafficking. We also discuss Babz’s incredible life since, from attending Barber-Scotia College, a historically Black college in the South, voter registration with Andrew Young and Rev. Jesse Jackson, earning a Master of Public Administration at Baruch College in New York City, rape crisis counseling, and then as an Alderman in New Haven, where she ran afoul with the law. After serving time in Danbury Federal Prison, Babz went on to be lifted up and serve as Editor of the Inner City News in New Haven, radio show host of her talk show, LoveBabz LoveTalk, and board member of many arts and justice non-profits in New Haven, CT.
So coming up, The Goddess. Babz Rawls Ivy. On White Collar Week. We hope you will join us. – Jeff
If you have a friend, family member, colleague or client with a white collar justice issue, please forward this post; they can reach us anytime – day or night! Our contact info:http://prisonist.org/contact-us.
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Guests on this Episode:
Babz Rawls Ivy
Babz Ivy Rawls, brilliant, charismatic, tireless, multi-talented, fixture of the New Haven and Connecticut community. A few of her roles include being a mother and interviewer of everyone from politicians to formerly incarcerated people to practitioners to academics about prison industrial complex issues on the Criminal Justice Insider radio show. She is also the Editor-in-Chief of the Inner-City News, “a 29-year Black-owned print publication working to hold the stories and images of local and global Black people sacred.” Babz embodies the triumph made in spite of experiencing challenges faced by many other formerly incarcerated women. She uses her vibrant voice to inform and influence people about her causes and her community.
You can find all episodes of our podcast “White Collar Week with Jeff Grant” on our websiteprisonist.org,our Facebook page, Podbean, YouTube (video), SoundCloud, Apple Podcasts, Spotify, LinkedIn, Instagram and Twitter.
Entrepreneur’s #4 Most Viewed Article of 2020: I Went to Prison for SBA Loan Fraud – 7 Things to Know When Taking COVID-19 Relief Money: by Jeff Grant, J.D., M.Div.. Link to article here.
The Philadelphia Inquirer: Steal Money from the Feds? First, Meet Jeff Grant, an Ex-Con who Committed Loan Fraud, by Erin Arvedlund: Link to article here.
Hannah Smolinski YouTube: Thinking About PPP Fraud?: Hannah Interviews Jeff Grant About Going to Prison for SBA Loan Fraud. Link to article and YouTube video here.
CFO Dive: After Serving Time, Fraudster Cautions Against PPP, Other Emergency Loans, by Robert Freedman. Link to article here.
Fraud Stories Podcast with Mark Lurie: SBA/PPP Loan Fraud with Guest: Jeff Grant. Link to podcast here.
Forbes: As Law Enforcement Pursues SBA Loan Fraud, Jeff Grant Talks Redemption, by Kelly Phillips Erb. Link to article here.
Taxgirl Podcast: Jeff Grant talks Desperation and Loans in a Time of Crisis with Kelly Phillips Erb on Her Podcast. Link to article and podcast here.
Business Talk with Jim Campbell: Jeff Grant Talks with Jim About Going to Prison for SBA Loan Fraud and What to Know When Taking Coronavirus Relief Money, Biz Talk Radio Network, Broadcast from 1490 AM WGCH Greenwich, CT. Listen on YouTube here.
Babz Rawls Ivy Show: Babz Rawls Ivy & Jeff Grant Talk SBA / PPP Loan Fraud and 7 Things to Know Before You Take Coronavirus Relief Money, WNHH 103.5 FM New Haven. Watch on YouTube here.
White Collar Week with Jeff Grant, Podcast Episode 09: Small Business Edition, with Guest Kelly Phillips Erb. Link here.
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Louis Reed/Babz Rawls Ivy PSA:
Some very kind words from my dear friends Louis L. Reed and Babz Rawls Ivy in this brief PSA. Thank you Louis and Babz! – Jeff
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All Episodes:
Link here to Podcast Ep. 21: All Things SBA, PPP & EIDL, with Guest: Hannah Smolinski, CPA, Virtual CFO
Link here to Podcast Ep. 20: Reinventing Yourself After Prison, with Guests: Glenn E. Martin & Richard Bronson
Link here to Podcast Ep. 19: Insider Trading Charges Dismissed, with Guest: Richard Lee
Link here to Podcast Ep. 18: Is Your Life a Movie? The Producers, with Guests: Lydia B. Smith, Bethany Jones & Will Nix
Link here to Podcast Ep. 17: #TruthHeals, Systemic Abuse & Institutional Reform with Guest: Vanessa Osage, feat. Guest Co-Host Chloe Coppola
Link here to Podcast Ep. 16: Politicians, Prison & Penitence, with Guest: Bridgeport, CT Mayor Joseph Ganim
Link here to Podcast Ep. 15: A Brave Talk About Suicide, with Guests Bob Flanagan, Elizabeth Kelley, & Meredith Atwood
Link here to Podcast Ep. 14: Recovery & Neighborhood, with Guest: TNP’s Tom Scott
Linkhereto Podcast Ep. 13: Everything but Bridgegate, with Guest: Bill Baroni
Linkhereto Podcast Ep. 12: The Truth Tellers, with Guests: Holli Coulman & Larry Levine
Linkhereto Podcast Ep. 11: Blank Canvas, with Guest: Craig Stanland
Linkhereto Podcast Ep. 10: The Ministers, with Guests: Father Joe Ciccone & Father Rix Thorsell
Linkhereto Podcast Ep. 09: Small Business Edition, with Guest: Taxgirl Kelly Phillips Erb
Linkhereto Podcast Ep. 08: The Academics, with Guests: Cathryn Lavery, Jessica Henry, Jay Kennedy & Erin Harbinson
Linkhereto Podcast Ep. 07: White Collar Wives. with Guests: Lynn Springer, Cassie Monaco & Julie Bennett. Special Guest: Skylar Cluett
Linkhereto Podcast Ep. 06: Madoff Talks, with Guest: Jim Campbell
Linkhereto Podcast Ep. 05: Trauma and Healing when Mom goes to Prison, with Guests: Jacqueline Polverari and Her Daughters, Alexa & Maria
Link here to Podcast Ep. 04: One-on-One with Tipper X, with Guest: Tom Hardin
Linkhereto Podcast Ep. 03: Compassionate Lawyering, with Guests: Chris Poulos, Corey Brinson, Bob Herbst & George Hritz
Linkhereto Podcast Ep. 02: Substance Abuse & Recovery During COVID-19, with Guests: Trevor Shevin & Joshua Cagney
Linkhereto Podcast Ep. 01: An Evening with Our White Collar Support Group, with Guests: 16 Members of Our White Collar Support Group
Linkhereto Podcast Ep. 00: White Collar Week with Jeff Grant: What is White Collar Week?
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Jeff Grant
What is the White Collar Justice Community?
Welcome to White Collar Week with Jeff Grant, a podcast serving the white collar justice community. It’s the isolation that destroys us. The solution is in community.
If you are interested in this podcast, then you are probably already a member of the white collar justice community – even if you don’t quite know it yet. Our community is certainly made up of people being prosecuted, or who have already been prosecuted, for white collar crimes. But it is also made up of the spouses, children and families of those prosecuted for white collar crimes – these are the first victims of white collar crime. And the community also consists of the other victims, both direct and indirect, and those in the wider white collar ecosystem like friends, colleagues, prosecutors, defense attorneys, judges, law enforcement, academics, researchers. Investigators, mitigation experts, corrections officers, parole & probation officers, reentry professionals, mental health care professionals, drug and alcohol counselors – and ministers, chaplains and advocates for criminal and social justice reform. The list goes on and on…
Our mission is to introduce you to other members of the white collar justice community, to hear their very personal stories, and hopefully gain a broader perspective of what this is really all about. Maybe this will inspire some deeper thoughts and introspection? Maybe it will inspire some empathy and compassion for people you might otherwise resent or dismiss? And maybe it will help lift us all out of our own isolation and into community, so we can learn to live again in the sunshine of the spirit.
Along the way, I’ll share with you some of the things I’ve learned in my own journey from successful lawyer, to prescription opioid addict, white collar crime, suicide attempt, disbarment, destruction of my marriage, and the almost 14 months I served in a Federal prison. And also my recovery, love story I share with my wife Lynn Springer, after prison earning a Master of Divinity from Union Theological Seminary in NYC, pastoring in an inner city church in Bridgeport CT, and then co-founding with Lynn in Greenwich CT, Progressive Prison Ministries, the world’s first ministry serving the white collar justice community. It’s been quite a ride, but I firmly believe that the best is yet to come.
So I invite you to come along with me as we experience something new, and bold, and different – a podcast that serves the entire white collar justice community. I hope you will join me.
It’s the Isolation that Destroys Us. The Solution is in Community.
Progressive Prison Ministries, Inc. is the world’s first ministry supporting the white collar justice community. Founded by husband and wife,Jeff Grantand Lynn Springerin Greenwich CT in 2012, we incorporated as a nonprofit in Connecticut in 2014, and received 501(c)(3) status in 2015. Jeff has over three decades of experience in crisis management, business, law (former), reentry, recovery (clean & sober 17+ years), and executive and religious leadership. As Jeff was incarcerated for a white-collar crime he committed in 2001, he and Lynn have a first-hand perspective on the trials and tribulations that white-collar families have to endure as they navigate the criminal justice system and life beyond.
Progressive Prison Ministries, Inc. is nonsectarian, serving those of all faiths, or no faith whatsoever. To date we have helped over three hundred fifty (350) individuals, and their families, to accept responsibility for their actions and to acknowledge the pain they have caused to others. In accordance with our commitment to restorative justice, we counsel our members to make amends as a first step in changing their lives and moving towards a new spiritual way of living centered on hope, care, compassion, tolerance, empathy and service to others. Our team has grown to over ten people, most with advanced degrees, all of whom are currently volunteering their time and resources.
Progressive Prison Ministries’ goal is to provide spiritual solutions and emotional support to those who are feeling alone, isolated, and hopeless. We have found that these individuals are suffering from a void but are stuck, and don’t know what to do about it. Our objective is to help them find a path to a healthy, spirit-filled place on the other side of what may seem like insurmountable problems. Many of those we counsel are in a place where their previous lives have come to an end due to their transgressions. In many cases their legal problems have led to divorce, estrangement from their children, families, friends and support communities, and loss of a career. The toll this takes on individuals and families is emotionally devastating. White-collar crimes are often precipitated by other issues in the offenders’ lives such as alcohol or drug abuse, and/or a physical or mental illness that lead to financial issues that overwhelms their ability to be present for themselves and their families and cause poor decision making. We recognize that life often presents us with such circumstances, sometimes which lead us to make mistakes in violation of the law.
All conversations and communications between our ordained ministry, and licensed clinical relationships, and those we serve fall under state privilege laws. This is one reason that attorneys often allow and encourage their clients to maintain relationships with us while in active prosecution or litigation situations.
If you, a friend, family member, colleague or client are suffering from a white collar criminal justice issue or are experiencing some other traumatic or life-altering event, and would like to find a path to a healthy, spirit-filled place on the other side of what seems like insurmountable problems, please contact us to schedule an initial call or appointment.
Copyright 2021, All Rights Reserved, Progressive Prison Ministries, Inc.
Taking a paycheck protection program (PPP) loan or other federally backed assistance to get through the pandemic will make your problem worse if you don’t have a realistic plan for the money, a former business owner convicted of federal loan fraud says in a White Collar Week podcast.
Jeff Grant, whose 20-person law firm was struggling when the federal government made emergency loans available after the 9/11 terrorist attacks, said he rushed to get the money without thinking through how best to use it. The result was a 13-month jail stint.
“It was raw desperation,” said Grant, who today focuses on helping other white collar criminals navigate a post-crime life. “At that point I was losing my business. I would have done anything for any gasp of air to try to save my business.”
EIDL loan
Grant applied for a $250,000 loan under the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program, a resource that, along with the Paycheck Protection Program (PPP), the federal government has once more made available, this time for pandemic-hit businesses.
To increase his chances of getting the money, he said on his application that his business was located across the street from Ground Zero in Manhattan, when it wasn’t — a form of wire fraud — and he used the money to pay off his personal debt — a form of money laundering, because the program’s debt covenants restricted the money for use only in the business.
“I had run up [my credit card debt] in the months prior [to 9/11], trying to save my business,” he said. “I was paying 24% interest on the credit cards. The EIDL loan was about 3%. It seemed to make sense: replace the 24% money with 3% money.”
For two years afterward, Grant said, he had no idea he was being investigated.
“Risk of an audit never entered my mind,” he said. “It was immediately after 9/11: a huge problem for the nation. I was just this little guy who was never going to have to account for anything.”
In addition to his business struggles, Grant was wrestling with personal problems that had jeopardized his law license. Facts emerging from bar association proceedings related to his practice may have led the government to investigate him, he said.
“I just got a phone call from two federal agents who told me there was a warrant out for my arrest,” he said.
Rather than fight the charges, he admitted his crime.
“Just like a business decision, you work from the end-result back,” he said. “I knew I had done something wrong. I wanted to pay for my crime. I made full restitution. A lot of people spend a lot of time and money trying to wriggle out of it, but we’re in a world where over 95% of criminal prosecutions result in plea bargains. There are virtually no trials. The government gives you a disincentive to defend yourself at trial and an incentive to resolve it quickly.”
Vast sums of money
Against the pandemic backdrop, Grant said, the kind of fraud he committed after 9/11 is probably much greater today, with hundreds of billions of federal loan funds available to struggling businesses, essentially on an honor system, since applicants simply check a box to certify their eligibility.
“One of my concerns is, people are just kind of wading in [to these programs],” he said.
Unlike EIDL loans, PPP loans don’t have to be paid back if the proceeds are used for eligible purposes, like payroll and operating expenses.
The government is making almost $300 billion in PPP assistance available under the latest funding round, enacted in December. Applications close at the end of the first quarter. Prior to this latest round, the program had made some $500 billion available, so more than $800 billion could be circulating by the end of the first quarter.
Grant advises against using the funds, even though they’re easy to access, to shore up a business that was either struggling before the pandemic or doesn’t have a realistic plan for getting through it, because the cash infusion can’t solve a systemic problem.
“You fall prey to magical thinking,” he said. “Money usually exacerbates problems without a good plan.”
He later worked with a nonprofit that, to attract customers, charged less than it recouped to provide services. As a result, the more services it provided, the more money it lost. It took out a $1 million state grant.
“Without fixing the business model, it blew through the $1 million in 18 months,” he said.
More on SBA PPP & EIDL Loan Fraud:
Entrepreneur’s #4 Most Viewed Article of 2020: I Went to Prison for SBA Loan Fraud – 7 Things to Know When Taking COVID-19 Relief Money: by Jeff Grant, J.D., M.Div.. Link to article here.
The Philadelphia Inquirer: Steal Money from the Feds? First, Meet Jeff Grant, an Ex-Con who Committed Loan Fraud, by Erin Arvedlund: Link to article here.
Hannah Smolinski YouTube: Thinking About PPP Fraud?: Hannah Interviews Jeff Grant About Going to Prison for SBA Loan Fraud. Link to article and YouTube video here.
Fraud Stories Podcast with Mark Lurie: SBA/PPP Loan Fraud with Guest: Jeff Grant. Link to podcast here.
Forbes: As Law Enforcement Pursues SBA Loan Fraud, Jeff Grant Talks Redemption, by Kelly Phillips Erb. Link to article here.
Taxgirl Podcast: Jeff Grant talks Desperation and Loans in a Time of Crisis with Kelly Phillips Erb on Her Podcast. Link to article and podcast here.
Business Talk with Jim Campbell: Jeff Grant Talks with Jim About Going to Prison for SBA Loan Fraud and What to Know When Taking Coronavirus Relief Money, Biz Talk Radio Network, Broadcast from 1490 AM WGCH Greenwich, CT. Listen on YouTube here.
Babz Rawls Ivy Show: Babz Rawls Ivy & Jeff Grant Talk SBA / PPP Loan Fraud and 7 Things to Know Before You Take Coronavirus Relief Money, WNHH 103.5 FM New Haven. Watch on YouTube here.
White Collar Week with Jeff Grant, Podcast Ep. 21: All Things SBA, PPP & EIDL, with Guest: Hannah Smolinski, CPA, Virtual CFO: Link here.
White Collar Week with Jeff Grant, Podcast Ep. 09: Small Business Edition, with Guest Kelly Phillips Erb. Link here.
Congratulations to our friend and colleague, Jacqueline Polverari, on her new podcast Criminal Justice Cafe. In this episode, Jacquie interviews our friend and colleague, Craig Stanland, Author of the upcoming book, Blank Canvas: How I Reinvented My Life After Prison.
Both Jacquie and Craig are members of ourWhite Collar Support Groupthat meets online on Zoom on Monday evenings.
Criminal Justice Cafe: Transparent conversations about controversial subjects within the Criminal Justice System… from the inside out.
Watch on YouTube:
Craig Stanland:
After hitting rock bottom, Craig Stanland was forced to make a choice: give up or rebuild. He thought he had “it all” until he lost sight of what’s truly important and made the worst decision of his life, losing everything along the way, including his own self-worth. Through the painful, terrifying process of starting over, Craig ultimately discovered that when you have nothing, anything is possible.
Today, Craig is an author, speaker, and Reinvention Architect. He specializes in working with people whose lives have fallen apart, helping them reinvent themselves by showing them how to rebuild their self-worth and create the extraordinary lives they’ve always wanted.
Jacqueline Polverari, MBA, MSW is the founder and Executive Director of Evolution Reentry Services, focusing on the needs of women who have been impacted by the Criminal Justice System.
Jacqueline has over 25 years’ experience as a professional with proven successes in business leadership, mentoring and therapeutic environments. Her experience working with trauma culminated after spending almost a year in Danbury Federal Prison Camp for Women and observing the trauma women experience related to being incarcerated. She has since dedicated herself to Criminal Justice Reform and Reentry services with a special focus on trauma and reentry services for women relating to incarceration. Jacqueline is an active member of the National Association of Social Workers, JustLeadershipUSA and #Cut50 and speaks at conferences and symposiums throughout the country. She most recently designed and hosted the first retreat for women convicted of a white-collar crime in the country in October 2019. Jacqueline is working diligently to continue her education and has returned to school to obtain her Doctoral Degree in Social Work with a concentration in Criminal Justice.
On Jan. 12, the federal government carried out the first execution of a woman since 1953.
The woman is Lisa Montgomery, who in 2008 was convicted of killing Bobbie Jo Stinnett, a pregnant woman, and removing Stinnett’s baby and treating her as her own. It looked like the execution might have been scheduled for Jan. 20 or later, but the Supreme Court of the United States reversed each of three stays – court orders halting the execution – to allow the government to take her life.
Montgomery’s last hope was President Donald Trump. But he didn’t grant her clemency or a reprieve, thereby throwing away his legacy of protecting victims of sex trafficking.
The Department of Homeland Security defines human trafficking as “the use of force, fraud or coercion to obtain some type of labor or commercial sex act.” The mention of human trafficking conjures images of women from foreign countries being smuggled out. But it’s a domestic problem; about 83% of sex trafficking victims are United States citizens, according to the Bureau of Justice Statistics. About half are children, according to the federal Office for Victims of Crime.
Montgomery was one of them. As her clemency petition detailed, at age 11, she was prostituted by her own mother in order to “earn her keep.” Her lawyers report that “the roofer, the plumber, the propane man, and who knows how many others, each took their turn” raping Montgomery and paying her mother for the opportunity.
When I was incarcerated, I saw how much sexual abuse of young girls contributes to mental illness that rips away moral inhibitions as an adult. This isn’t an abuse excuse; it’s statistical analysis. Experiencing child abuse doubles the probability that an adult will break the law, says the National Bureau of Economic Research, and sexual abuse amplifies this risk the most.
Indeed 16 women who committed crimes like Montgomery’s had similar abuse histories, yet they were either spared the death penalty by a jury or had their death sentences commuted because of that mistreatment.
Montgomery’s crime is severe and she took responsibility for it. She knew she deserved accountability. But imposing the ultimate punishment on her ignores the fact that the road to Stinnett’s death was paved with molestation by adults who never faced consequences for it – even after Montgomery reported it to a family member who was a police officer.
Addressing sexual trafficking of children is a blueprint for crime reduction, and very few presidents have tackled human trafficking the way Trump has. In September the Department of Justice released $100 million in grants; $35 million will cover survivors’ short-term housing costs. On Dec. 31, he named January 2021 “National Slavery and Human Trafficking Prevention Month.” For the first time, a White House staffer will work exclusively on combatting human sex trafficking, a change that future presidents will likely maintain – at least they should.
The awareness of human trafficking has increased exponentially, arguably because of what the 45th president of the United States did to combat it. The National Human Trafficking Hotline referred 499 cases to law enforcement in 2010 but 3,599 in 2019.
The Jan. 6 riots at the nation’s Capitol and his historic second impeachment have imperiled what Trump can bequeath to history; anything good he might have done will be ignored as people interpret his works. The president could have associated his tenure with protecting people by forbearing the ultimate punishment on a trafficking survivor like Lisa Montgomery. But he didn’t.
Interestingly enough, on Oct. 16, 2020 – the same day the Department of Justice announced the scheduling of Montgomery’s execution – Trump told NBC’s Savannah Guthrie that he agrees with being “very strong against pedophilia.” If that were the case, then he would have hated what was done to Montgomery as a child, at least enough to prevent her unnatural death. But he didn’t.
Executing Montgomery implicitly endorsed the illegal and wretched trade of her tiny body that Trump allegedly worked so hard to stop. The president vowed to “tenaciously pursue the promise of freedom for all victims of this terrible crime.” But he didn’t.
While freedom for Montgomery wasn’t a possibility, administering capital punishment granted a win to the people who sexually abused her. That’s not what Trump’s tenure was ever supposed to be about. But in the end, it was and it will remain that way.
When he leaves office Jan. 20, remember this: President Donald J. Trump turned his back on trafficking victims and protected pedophiles and sexual abusers. It was fully within his authority – and consistent with his other acts – to spare Lisa Mongtomery. He didn’t, instead opting for a shameful legacy.
Chandra Bozelko writes the award-winning blog Prison Diaries. You can follow her on Twitter at @ChandraBozelko and email her at outlawcolumn@gmail.com.
Host Jacqueline Polverari is joined by defense attorney Norm Pattis to discuss his philosophy on the prison system, judges, and what makes a good defense attorney.
Host Jacqueline Polverari is joined by defense attorney Norm Pattis to discuss his philosophy on the prison system, judges, and what makes a good defense attorney.
Opinions expressed by Entrepreneur contributors are their own.
In the months after 9/11, I was frantic.
But my fears had less to do with the tragedy at the World Trade Center and more to do with the fact that, after 10 years of rampant prescription opioid abuse, my business was failing. I was searching desperately for an out. Meanwhile, the television and radio were blaring with ads for 9/11 FEMA loans administered by the U.S. Small Business Administration.
So, on an especially bad day, I lied.
I said I had an office near ground zero. I received the SBA loan I requested, and immediately paid down the personal credit cards I had run up while waiting for the SBA money. Even so, the loan did little to stop my spiral into drug addiction, mental health issues, marital problems and magical thinking.
In 2002, I resigned my law license and started on the road to recovery. But it all caught up with me about 20 months later, when I was arrested for the misrepresentations on my loan application. I served almost 14 months at a Federal prison for wire fraud and money laundering.
My objective in writing this piece is to offer some insight on what business owners should consider before they take out disaster loans. Certainly, the majority of people requesting these loans are honest and upstanding entrepreneurs who have immense need for the aid, and will use the funds properly. I am very glad there is help for them. That said, history has shown us again and again that when people are in dire need, they’re more prone to make impulsive, ill-advised decisions. My hope is that sharing my experience will help others avoid the consequences I faced. Here are seven takeaways.
1. Desperate people do desperate things.
There were thousands of fraud prosecutions after 9/11, Hurricane Katrina, Superstorm Sandy, and so on. Why? Whether because of overwhelming business issues, poor personal judgment, or just plain bad luck, people were wounded, desperate and willing to do anything, anything, to stop the bleeding. But if the wound is too deep, a Band-aid is not sufficient.
Practice point: In any situation, behaving desperately is unlikely to save your business.
2. Beware of the belief that rules are suspended in times of emergency.
The government is advertising that huge amounts of money are available to save our businesses. I recently sat in on a webinar run by a very reputable business consulting group that recommended that attendees get their SBA disaster loan applications in immediately, regardless of the facts or the actual needs of their business — they said we could always modify our applications prior to taking the money. State unemployment websites are actually giving instructions, in writing, on how to mislead and circumvent the system in order to get approved. Don’t take the bait! If you default two years from now, this “good-meaning advice” won’t matter to prosecutors.
Practice point: Be truthful at all times.
3. Beware of magical thinking.
This is a tough one because entrepreneurs are inherently optimistic. We believe that things will always be better tomorrow than they are today. It drives us, makes us successful, informs our risk-taking. But in times of trauma, that voice can be an entrepreneur’s worst enemy. Does this sound familiar? We have learned the hard way that there is no shortcut, and yet we desperately want there to be one right now.
Practice point: Instead of immediately reaching for a bailout or other quick fix, develop a good solid business plan. Maybe a disaster loan will fit into this plan; maybe it won’t.
4. This paradigm shift will affect all small to mid-size businesses.
We are in the midst of a massive reordering that has already had a huge effect on small and mid-sized businesses. Business owners are being called to closely examine if our business models are still viable, or if we must pivot to new ways of doing things. Example: the Swiss watch industry completely missed the shift to digital watches. Have we waited too long to have a robust online presence? Are our products or services even needed anymore? Have we been holding on by a thread for years, unwilling or unable to look at the hard facts?
Practice point: Get real, now. Don’t borrow money to save a business that can’t be saved.
5. Be cautious when borrowing from the government.
As is the case with any loan, the devil is in the details. The terms and covenants in the loan documents dictate what you can or can’t do with the money once you get it. You can only use the funds for the purposes you stated in your application — that is, to pay operating expenses of the business to keep it afloat until it starts bringing in sufficient revenue again. You (and your spouse) will probably have sign for the loan personally, and will probably have to pledge all available collateral, including a second (or third) mortgage on your house. If you maxed out your personal credit cards while anticipating your disaster relief funding, you can’t use the money to pay off your cards.
Practice point: Read the terms and covenants of the loan closely. Whatever the loan terms say to do, do, and whatever they say don’t do, don’t do. No exceptions.
6. We can’t save our businesses and our lifestyles at the same time.
Here’s the big trap. We have mortgages, car payments, school tuitions, and other personal expenses that have to be paid, and soon. But simply put, SBA loans are meant to save your business, not your lifestyle. Discuss all your options with advisors and friends you trust — ones that will tell you the truth! It’s like going to the doctor. Your diagnosis will only be as accurate as the history you provide. These are trying times, with a triage system designed to be more expeditious than thorough.
Practice point: There is no such thing as a free lunch. Borrowing money comes with responsibility and accountability.
7. Get acquainted with acceptance.
I hope we are all great entrepreneurs who can figure out ways to make our businesses survive and flourish. But let’s face it. Some of our businesses will not make it, even with the infusion of government funds. What should we do? We can pare down, embrace change and do things differently as we start a new chapter. Never forget that there will always be opportunity to start again, and to live a fuller, more abundant life.
Jeff Grant, J.D., M.Div. is Co-Founder of Progressive Prison Ministries, Inc., the world’s first ministry serving the white collar justice community. The ministry hosts an online White Collar Support Group every Monday night. After an addiction to prescription opioids and serving almost fourteen months in a Federal prison for SBA loan fraud he committed post-9/11 when he was a lawyer, Jeff started his own reentry — earning a Master of Divinity from Union Theological Seminary in the City of New York with a focus in Social Ethics.
Jeff has over three decades of experience in crisis management, business, law (former), reentry, recovery (clean & sober 17+ years), public speaking and corporate training. Sometimes referred to in the press as “The Minister to Hedge Funders,” he uses his experience and background to guide individuals, families and organizations forward in their lives, relationships, careers and business opportunities, and to help them to stop making the kinds of decisions that previously resulted in loss, suffering and shame.
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More on SBA PPP & EIDL Loan Fraud:
The Philadelphia Inquirer: Steal Money from the Feds? First, Meet Jeff Grant, an Ex-Con who Committed Loan Fraud, by Erin Arvedlund: Link to article here.
Hannah Smolinski YouTube: Thinking About PPP Fraud?: Hannah Interviews Jeff Grant About Going to Prison for SBA Loan Fraud. Link to article and YouTube video here.
Fraud Stories Podcast with Mark Lurie: SBA/PPP Loan Fraud with Guest: Jeff Grant. Link to podcast here.
Forbes: As Law Enforcement Pursues SBA Loan Fraud, Jeff Grant Talks Redemption, by Kelly Phillips Erb. Link to article here.
Taxgirl Podcast: Jeff Grant talks Desperation and Loans in a Time of Crisis with Kelly Phillips Erb on Her Podcast. Link to article and podcast here.
Business Talk with Jim Campbell: Jeff Grant Talks with Jim About Going to Prison for SBA Loan Fraud and What to Know When Taking Coronavirus Relief Money, Biz Talk Radio Network, Broadcast from 1490 AM WGCH Greenwich, CT. Listen on YouTube here.
Babz Rawls Ivy Show: Babz Rawls Ivy & Jeff Grant Talk SBA / PPP Loan Fraud and 7 Things to Know Before You Take Coronavirus Relief Money, WNHH 103.5 FM New Haven. Watch on YouTube here.
Also: White Collar Week with Jeff Grant, Podcast Ep. 09: Small Business Edition, with Guest Kelly Phillips Erb. Link here.
Also, White Collar Week with Jeff Grant, Podcast Ep. 21: All Things SBA, PPP & EIDL, with Guest Hannah Smolinski. Link here.
After hitting rock bottom, Craig Stanland was forced to make a choice: give up or rebuild. He thought he had “it all” until he lost sight of what’s truly important and made the worst decision of his life, losing everything along the way, including his own self-worth. Through the painful, terrifying process of starting over, Craig ultimately discovered that when you have nothing, anything is possible. 
Jacqueline Polverari, MBA, MSW is the founder and Executive Director of Evolution Reentry Services, focusing on the needs of women who have been impacted by the Criminal Justice System. 
