The state of Kentucky received approval for $2.5 billion worth of Paycheck Protection Program (PPP) funding. More than six thousand small businesses across the state applied for the PPP when the government first ruled it out and received funds as a means of keeping their business open and keeping workers employed despite the sudden economic downturn in recent years.
Unfortunately, instructions about the use of PPP funds and details about the program were not immediately forthcoming. Some people applied for and received PPP funds, only to use them for purposes other than payroll. Now, the federal government has begun prosecuting those who missed used PPP funding in the last few years.
Do you have reason to worry about prosecution?
If your company is one of the thousands of businesses in Kentucky that successfully applied for PPP funds, you may worry about what a review of how you use those funds might mean for your future or what your inability to fully repay those funds might mean.
The federal government has started bringing fraud charges against those who applied for PPP funds that they should not have received or misused funds that their business was technically qualified to obtain. There have already been some high-profile cases, and many more are likely to come to public attention in the next few months.
Those who worry they may face prosecution will want to talk about their financial history and their current business circumstances to figure out the best options in their situation. Fighting back against allegations of criminal misconduct related to Federal programs can protect you and the company you operate.