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For business owners who received a federal Paycheck Protection Program (PPP) loan this spring and misused it, the time of reckoning has come. More than a dozen criminal cases have been filed across 11 states involving PPP loan misuse. These first cases involve “blatant fraud” by small businesses and individual business owners, not large corporations. You may have heard that those who took out a PPP loan for less than $2 million won’t be audited. But if the IRS suspects fraud, all bets are off.

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