The Paycheck Protection Program (PPP) was passed by Congress as part of the Coronavirus Aids, Relief, and Economic Security (CARES) Act in March 2020 and was renewed in December 2020. The program was designed to provide forgivable loans to small businesses during this period of economic uncertainty that could be used to cover payroll costs, mortgage, interest, rent, and utility costs over the period the loan was made.
Unfortunately, the program has experienced an overwhelming number of applications and, with the combination of rapidly evolving regulatory requirements and loopholes, many business owners who received PPP loans are now at risk of federal investigation and severe criminal penalties over allegations of PPP loan fraud.