Judge Demands SBA Release PPP Data Amidst Millions Of Dollars Wasted Due To Suspected Fraud

Last week, after months of calls for further transparency from the Small Business Administration (SBA), a federal judge ordered the SBA to disclose all the names, addresses, and precise loan amounts issued through the PPP and EIDL programs. The news came long after owners of mom-and-pop businesses pleaded for greater clarity from the program.   

Meanwhile, this weekend, new reporting from the Wall Street Journal affirms strong indicators of widespread fraud in the SBA’s small business lending program. Accountable.US has been calling attention to this issue for months, asking the SBA and its Inspector General to investigate these instances of fraud and abuse. We have also been calling for further transparency regarding loan forgiveness in order to ensure that funds are distributed equitably and those who need assistance most are able to obtain it. 


Wall Street Journal | Evidence of PPP Fraud Mounts, Officials Say 

“Several hundred PPP-related investigations have been opened, involving nearly 500 suspects and hundreds of millions of dollars of loans, according to the Federal Bureau of Investigation. The Justice Department has charged 73 defendants in PPP-related fraud cases, a spokesman said late last month. Many involve allegations of made-up companies or forged documents.” 

Financial Advisor Magazine | An Avalanche Of Fraud Buried A Small-Business Relief Program 

“People caught on fast. In some neighborhoods in Chicago and Miami, it seemed like everyone made a bogus application to the Small Business Administration’s Covid-19 Economic Injury Disaster Loan program. Professional thieves from Russia to Nigeria cashed in. Low-level employees at the agency watched helplessly as misspent money flew out the door.” 

Augusta Free Press | Norfolk man pleads guilty to $196K COVID-19 loan fraud scheme 

San Fernando Valley Business Journal | Two Men Charged With PPP Loan Fraud 

Q13 News Seattle | Billions in COVID-19 business loans possibly given to scammers, report says 


NBC News | Judge orders Trump administration to reveal PPP loan data it sought to obscure 

“The judge ordered the agency to disclose all the names, addresses and precise loan amounts issued through the Paycheck Protection Program and Emergency Injury Disaster Loan program. The decision comes after a lawsuit was filed by a dozen news organizations, charging that the agency was not fulfilling its obligations under the Freedom of Information Act. The SBA had previously released only summarized and anonymized data for PPP loans under $150,000 — which account for about 4.5 million of the 5.2 million in total loans made — claiming they would violate borrowers’ privacy by revealing the size of their payroll.” 

Accountable.US | More Confusion in SBA’s Months-Late PPP Oversight Effort 

“Without proper transparency and oversight measures, the Paycheck Protection Program was rife with fraud and abuse after the Trump administration failed to vet applicants properly. Now Trump’s SBA is attempting to clean up its PR mess after millions of dollars in fraud have been uncovered with more investigations still underway.” 

ProPublica | Judge Orders the Release of Data on Emergency Loans for Small Businesses 

@Accountable_US | “This is a cautious step toward transparency. But it’s not enough. https://t.co/5WMtC5QTV3?amp=1” [View Tweet]