4
TERMS AND CONDITIONS
1. This Settlement Agreement is neither an admission of liability by Taylor or
SlideBelts nor a concession by the United States that its civil claims are not well founded. But
Taylor and SlideBelts admit, acknowledge, and accept responsibility for the following facts:
a. On April 3, 2020, while SlideBelts was a debtor in bankruptcy
proceedings, it submitted an application for a PPP loan for approximately $300,000 to a Credit
Union in Sacramento, California (FI-1). On April 8, 2020, SlideBelts submitted a second PPP
loan application to a federally insured financial institution in Fort Lee, New Jersey, for $350,000
(FI-2). In response to Question 1 of the SBA’s PPP application to both lenders, Taylor and
SlideBelts answered falsely that SlideBelts was not “presently involved in any bankruptcy.”
b. On April 10, 2020, a manager from FI-1 advised Taylor by email that he
had answered Question 1 incorrectly because the manager knew that SlideBelts was presently in
bankruptcy. Indeed, FI-1 was a creditor in SlideBelts’ bankruptcy proceedings. Taylor
responded that his answer was an “[o]versight,” but nonetheless argued that the question
regarding bankruptcy in the application was “an overreach” by the SBA. Days later, on April 14,
2020, Taylor emailed the manager again and reiterated that the term “bankruptcy” should not be
included in Question 1 of the PPP loan application, and asked FI-1 to approve SlideBelts’ loan.
But the manager rejected Taylor’s request, repeating that SlideBelts was definitively not eligible
for a PPP loan because it was in bankruptcy. For that reason, FI-1 declined to approve a PPP
loan to SlideBelts. Taylor answered and acknowledged the manager, “that does make sense. All
good!”
c. On April 14, 2020, three hours after FI-1 rejected SlideBelts’ application,
SlideBelts submitted a third application for a PPP loan to a federally insured financial institution
in Minneapolis, Minnesota (“FI-3”). In that application, Taylor and SlideBelts made the same
false statement for a third time that SlideBelts was not presently involved in any bankruptcy.
Taylor and SlideBelts made the false statement to influence FI-3 to grant SlideBelts a PPP loan
guaranteed by the SBA.
d. FI-2 approved SlideBelts’ PPP loan application before FI-3. Taylor
signed the loan note with FI-2 and stated falsely that SlideBelts was not in bankruptcy to
influence FI-2 to execute the note and disburse the loan proceeds to SlideBelts. Taylor knew
from his communications with FI-1 that FI-2 would not execute the note and the SBA would not
guarantee the loan if he disclosed that SlideBelts was in bankruptcy. Taylor also knew that
SlideBelts was already in default of the PPP loan because he certified that the borrower
(SlideBelts) would default on the loan if it entered bankruptcy proceedings.
e. Taylor’s false statements influenced FI-2 to execute the loan note and
disburse the $350,000 to SlideBelts, and the SBA to guarantee the loan. Had FI-2 or the SBA
known that Taylor and SlideBelts falsely stated SlideBelts’ status in bankruptcy, FI-2 would not
have approved SlideBelts’ application and the SBA would have declined to guarantee the loan.
In addition, Taylor’s and SlideBelts’ false statements caused FI-2 to submit a false claim to the