What is the legal liability to the lending institution if a loan is explicitly used to fund a borrower's payroll?

The lender may be liable for reporting the amount of payroll to the IRS.

The lender may have no recourse to the borrower once the loan is disbursed.

The lender may be liable to pay future payrolls for the term of the loan.

The lender may be liable for payroll taxes that should have been withheld.