Tag: Small Business Administration

GOP Senators Accuse Biden-Harris Admin of Diverting Small Business Resources to ‘Green New Deal Handouts’

Daily Caller News Foundation
Joe Biden and Kamala Harris

A trio of top Republican senators accused the Biden administration for allegedly shuffling resources intended for small businesses into a “climate slush fund” in a letter exclusively obtained by the Daily Caller News Foundation.

Senators Joni Ernst of Iowa, James Risch of Idaho and Marco Rubio of Florida on August 9 sent a letter to Small Business Administration (SBA) head Isabel Guzman, accusing her agency of undermining Community Advantage, a program intended to provide loans to small businesses, by enrolling new lenders that will focus on “support[ing] small businesses’ efforts to reduce climate change.” The group of lawmakers also voiced suspicion regarding the SBA’s recent collaboration with the Environmental Protection Agency’s Greenhouse Reduction Fund, noting that the SBA’s July 22 announcement that it would be coordinating with the multi-billion dollar green energy grant program came right after Vice President Kamala Harris became the presumptive Democratic presidential nominee.

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Conservative Organization Investigating Biden Admin’s ‘Partisan’ Voter Registration Push in Key Swing State

Virginia Star Staff
Voter Registration

The America First Policy Institute (AFPI) launched an investigation Wednesday into a Biden administration program aimed at registering voters in a key swing state, the Daily Caller News Foundation has learned.

AFPI is demanding documents from the Biden administration regarding the Small Business Administration’s (SBA) voter registration efforts in Michigan, an operation it suspects could disproportionately benefit Democrats in November’s election, the organization exclusively told the DCNF. The SBA’s voter registration operations in Michigan are part of Executive Order 14019, which compels federal agencies to develop a plan to promote voter engagement and participation, sparking concerns from some conservatives that public funds may be used to help Democrats in the looming general election.

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Sen. Joni Ernst Releases List of Federal Agencies with High Employee No-Show Rates Post-COVID

Just the News
Senator Joni Ernst (R-IA)

With Christmas fast-approaching, Sen. Joni Ernst, R-Iowa put out a “naughty list” of government agencies that have high no-show rates of employees who have not returned to the office after the COVID-19 pandemic ended.

According to Ernst’s list, the Department of Housing and Urban Development and the Social Security Administration top the list with just 7 percent office occupancy rates.

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Government May Have Sent up to $1.3 Billion in COVID Aid to Foreign Countries

Virginia Star Staff

On Monday, a watchdog report claimed that the Small Business Administration (SBA) may have accidentally sent as much as $1.3 billion in COVID-19 relief funding to foreign countries during the pandemic.

According to the Daily Caller, the office of the SBA inspector general reported that the agency failed to detect the foreign IP addresses of those who applied for Economic Injury Disaster Loans (EIDL), which awarded as much as $2 million per business or nonprofit. As a result, up to $1.3 billion may have been sent to recipients in “high risk” countries.

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SBA Oversight Failures Lead to $93M in Questionable Awards to Disadvantaged Firms, Internal Audit Finds

Virginia Star Staff

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’s Golden Horseshoe is awarded to the Small Business Administration, which awarded $93 million in questionable contracts to small businesses owned by socially and economically disadvantaged individuals under the agency’s 8 (a) Business Development Program, according to a recent audit by the SBA Office of Inspector General.

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Report Claims Unions Skirted Rules to Receive Paycheck Protection Program Loans

The Center Square

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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Small Business Administration Spends $14.8 Million in Questionable Costs for Underutilized Small Business Portal

Virginia Star Staff
U.S Small Business Administration

This week’s Golden Horseshoe is awarded to the Small Business Administration for lax oversight of a $25 million grant for the creation of a COVID-19 relief small business portal that ran up $14.8 million in questionable costs for an underutilized hub, according to a report by the agency’s Office of Inspector General.

The SBA’s Office of Entrepreneurial Development (OED) received $25 million through the CARES Act to create a portal to help small businesses during the pandemic. An $18.6 million grant was awarded for the Resource Partner Training Portal program, but the intended results were not achieved. A combination of a failed marketing strategy to let small businesses know of the portal’s existence and unsupported or unallowable invoices led the inspector general to question $14.8 million in costs.

“SBA did not did not ensure the grant recipient developed and implemented an effective marketing and outreach strategy to ensure the hub successfully achieved the legislative purpose of the CARES Act,” Inspector General Hannibal “Mike” Ware stated in the report.

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Small Business Administration Not Taking Direct Action Against Partner Lenders That Issued Billions in Fraudulent Paycheck Protection Program Loans

Virginia Star Staff

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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Fraudsters Used Paycheck Protection Program Loans for Bentleys, Diamonds, Luxury Homes: Watchdog

Virginia Star Staff
woman on laptop with eye glasses and mug next to her

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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Virginia Applications Open for New Restaurant Revitalization Fund

Eric Burk

Restaurants can now apply for up to $10 million in COVID-19 relief funds through the Restaurant Revitalization Fund (RRF), a part of the recently passed American Recovery Plan (ARP). The RRF will provide a minimum $1,000 in funds to eligible restaurants and similar businesses to replace funds lost due to the pandemic.

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Commentary: Did PPP Work?

Virginia Star Staff

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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SBA Hid Communications with Planned Parenthood Amid GOP Criticism Over PPP Loans

Virginia Star Staff

The Small Business Administration hid communications with Planned Parenthood regarding COVID-19 loans that Republicans say were illegal, emails obtained by the Daily Caller News Foundation show.

The SBA released heavily redacted emails between the agency, lenders and Planned Parenthood affiliates in response to a Freedom of Information Act request the DCNF filed in May 2020. GOP lawmakers had previously demanded an investigation into $80 million in Paycheck Protection Program (PPP) loans, saying they were obtained illegally.

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