Government officials have sent strong signals that they will rigorously enforce requirements for receiving assistance under the Coronavirus Aid, Relief and Economic Security Act. In late April, Treasury Secretary Steven Mnuchin promised that any company seeking forgiveness of over $2 million in loans would be audited by the Small Business Administration, threatening criminal liability for any company that improperly accepted the assistance. And in early May, federal prosecutors in Rhode Island initiated the first fraud prosecution for misconduct associated with the receipt of government benefits under the CARES Act, charging two individuals with seeking payroll assistance loans for employees that did not exist. That prosecution is the first salvo of an enforcement effort that will likely last many years.

Unprecedented in size and scope, the CARES Act makes available over $2 trillion in economic stimulus, aid, loans and relief to individuals, state and local governments, and businesses and corporations, both big and small. That assistance, however, comes with many strings—a complex web of requirements, conditions and prerequisites that govern who can receive assistance and what must be done with the money.