Data scientists from the Pandemic Response Accountability Committee identified nearly $38 million in potentially improper or fraudulent pandemic loans were obtained using Social Security Numbers of dead people.
The loans were made through both the COVID-19 Economic Injury Disaster Loan program and Paycheck Protection Program.
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The Small Business Administration-administered Paycheck Protection Program paid out millions of dollars to ineligible unions, according to a new report released by the Freedom Foundation.
The Freedom Foundation investigated the SBA’s database of PPP loans, and concluded approximately 226 loans totaling $36.7 million were distributed to labor unions and affiliated organizations. The first round of PPP loans explicitly states such entities were ineligible for the government funds prior to March 11, 2021.
“The Small Business Administration knew as early as July 2020 that Paycheck Protection Program loans were being approved for unions that weren’t eligible to receive the funds,” Maxford Nelsen, Freedom Fund director of Labor Policy, told The Center Square.
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The federal government has spent an astounding $42,000 per federal taxpayer on so-called “stimulus” efforts since the pandemic began. Where did all that money go? Well, as it turns out, one of the biggest stimulus programs, the Paycheck Protection Program, failed miserably.
At least, that’s the finding of a new study from MIT economist David Autor and nine coauthors. They examined the $800 billion Paycheck Protection Program, which gave “loans,” most of which won’t have to be paid back, to businesses. It was created by Republicans and Democrats in Congress alike in hopes of helping businesses preserve their employees’ jobs for the duration of the COVID-19 crisis.
The study tracks the money to see where it ended up and what it achieved. The results… aren’t pretty.
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The Small Business Administration is not taking action against its partner lenders that issued billions of dollars in fraudulent Paycheck Protection Program forgivable loans, Just the News has learned.
Congress appropriated almost $1 trillion in forgivable PPP loans to assist businesses during the COVID-19 pandemic. Approximately 15% of the $961 billion is projected to have been obtained fraudulently, according to a study.
A House of Representatives panel estimated that $84 billion in PPP funds was issued fraudulently.
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This week’s Golden Horseshoe goes to the Small Business Administration for millions in Paycheck Protection Program loans it issued to fraudsters who used the money to purchase luxury homes, high-priced jewelry and expensive cars, including a Bentley and two Lamborghinis, according to a watchdog report.
The Paycheck Protection Program had the highest percentage of cases of criminal activity of all the pandemic relief programs, according to the Pandemic Response Accountability Committee’s recent Semiannual Report to Congress.
“A total of 14 OIGs have indictments/complaints, arrests, and/or convictions from April 1, 2021, through September 30, 2021, related to the federal government’s COVID-19 pandemic response,” PRAC reported.
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Senator Mark Warner (D-Virginia) and Congresswoman Jennifer Wexton (D-Virginia-10) made two stops in northern Virginia on Friday and Monday discussing impacts of COVID-19 and financial opportunities from federal relief.
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The Golden Horseshoe is a weekly designation from Just the News intended to highlight egregious examples of wasteful taxpayer spending by the government. The award is named for the horseshoe-shaped toilet seats for military airplanes that cost the Pentagon a whopping $640 each back in the 1980s.
This week, our award is going to the United States Small Business Administration and Treasury Department for awarding at least $200 million, but as much as $420 million, to Chinese Communist Party-linked businesses by way of the Paycheck Protection Program, intended to assist U.S. small businesses that were devastated by the coronavirus pandemic, widely believed to have originated in China.
A report from the Horizon Advisory strategic consulting group illustrates how negligible congressional oversight allowed at least 125 Chinese firms to “take advantage of the international disaster” by benefitting “directly from U.S. investment and relief measures.”
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A senior NASA employee has plead guilty to bank fraud after applying for over $350,000 in COVID-19-related relief. On Monday, NASA Senior Executive Service employee Andrew Tezna pleaded guilty to submitting fraudulent applications for Paycheck Protection Program (PPP) loans, Economic Injury Disaster loans, and COVID-19 unemployment benefits for his retired mother-in-law.
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As the Small Business Administration official who oversaw the Paycheck Protection Program, I’m often asked, “Did PPP actually work?”
PPP was a response to state and local governments mandating shutdowns as a way to slow the spread of COVID-19. The premise was this: Encourage lenders to provide small businesses and nonprofits with forgivable, SBA-guaranteed loans over an eight-week period as a payroll-support measure. This small business financial support was designed to help prevent mass unemployment as Americans were confined to their homes.
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Delegate Joe McNamara (R-Roanoke) has pre-filed HB 1787, legislation for the 2021 General Assembly session that will exempt business owners from state taxes on forgivable Paycheck Protection Program (PPP) loans. PPP loans are part of broad COVID-19 relief funding meant to help small businesses keep paying their employees.
When the PPP was passed by Congress in March 2020, the forgivable loans were exempt from federal taxes, but Virginia’s tax structure means the forgiven PPP loans are not automatically exempt from state taxes. McNamara said that could lead to confusion for business owners.
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Delegate Joe McNamara (R-Roanoke) has pre-filed HB 1787, legislation for the 2021 General Assembly session that will exempt business owners from state taxes on forgivable Paycheck Protection Program (PPP) loans. PPP loans are part of broad COVID-19 relief funding meant to help small businesses keep paying their employees.
When the PPP was passed by Congress in March 2020, the forgivable loans were exempt from federal taxes, but Virginia’s tax structure means the forgiven PPP loans are not automatically exempt from state taxes. McNamara said that could lead to confusion for business owners.
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U.S. Sen. Marsha Blackburn (R-TN) told CNBC’s SquawkBox on Wednesday that Republicans will try again to pass their bill that would provide PPP and vaccine funding despite Democrats’ attempts to block the efforts.
CNBC asked Blackburn if she would vote for a deal if the White House and the Treasury Department reached an agreement with House Speaker Nancy Pelosi (D-CA-12).
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Republican challenger Scott Taylor and incumbent Representative Elaine Luria (D-Virginia Beach) faced off Tuesday night in their first televised debate. The 2nd Congressional District race is currently a toss-up.
Political reporter Joe St. George served as the moderator. Questions featured were presented in three segments: from the moderator first, then viewers, and lastly from Taylor and Luria.
The U.S. Small Business Administration (SBA) and the U.S. Treasury Department this week released the names of 4.9 million Paycheck Protection Program (PPP) loan recipient businesses and nonprofits that received $150,000 or more.
The mostly forgivable PPP loans were funded through the federal Coronavirus Aid, Relief and Economic Security (CARES) Act.
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