Loan Forgiveness Begins With More Questions Than Answers
Last week, as tens of thousands of small businesses across the country closed their doors for good, new reporting revealed that energy companies, shell companies, and even a TikTok rival received taxpayer-funded bailout money.
Meanwhile, as Paycheck Protection Program (PPP) fraud cases continue to pop up across the nation, the Small Business Administration (SBA) started forgiving PPP loans with several questions unanswered, including how the agency is determining eligibility for loan forgiveness, which loans it has forgiven already — and how much of each one — and how long businesses should expect to wait to learn whether the SBA has approved their loans for forgiveness.
BAILOUT RECIPIENTS INCLUDE SHELL COMPANIES, A TIKTOK RIVAL, AND ENERGY COMPANIES
Washington Post | How the Cares Act gave millions to energy companies with no strings attached
“The Cares Act tax breaks highlight this crucial shortcoming of the historic U.S. economic relief effort. Nearly six months after the bill’s passage, more people are unemployed than at any time during the Great Recession, and there is little sign that billions of dollars in corporate tax relief have trickled down into the pockets of struggling families.”
Washington Post | ‘Doomed to fail’: Why a $4 trillion bailout couldn’t revive the American economy
The Telegraph | American TikTok rival Triller took $1bn coronavirus bailout
Powell Tribune | Bankrupt natural gas company snags royalty reductions
“When you’re handing out taxpayer-backed bailouts and royalty cuts like candy without doing the due diligence and work necessary to protect the public interest, like the Trump administration has done, it’s almost assured that countless bad actors like U.S. Realm will grab a handful, leaving the bill and cleanup for the rest of us,” said Jayson O’Neill, director of Western Values Project.
WHO HAS HAD THEIR PPP LOANS FORGIVEN? THE ANSWER REMAINS UNCLEAR
Accountable.US | Watchdog Calls on SBA for Sunlight in PPP Loan Forgiveness
Reuters | U.S. starts forgiving pandemic loans amid criticism, uncertainty
@Zachary | “SBA and Treasury are rolling out a simpler PPP forgiveness process for loans $50,000 or less. Here are the rules: Link.” [View Twitter Thread]
New York Times | Anxious for a Lifeline, the U.S. Economy Is Left to Sink or Swim
Politico Morning Money | FIRST LOOK: SBA PRESSURED ON LOAN FORGIVENESS DISCLOSURE — “Via a letter to SBA Administrator Jovita Carranza from watchdog group Accountable.US: ‘With rampant instances of abuse and fraud surrounding the PPP, it is essential that the SBA be transparent about loan forgiveness — both the process by which forgiveness is decided and which companies will have their loans forgiven — in order to ensure that funds are distributed equitably.’”
PPP FRAUD ROUNDUP
Fox News | California man accused of stealing $22M in PPP loans
@Accountable.US | According to @POGOblog, within the first 56 fraudulent cases of the government’s broken small business loan program (#PPP), criminals bought Lamborghinis, indulgent gambling trips, a yacht, and a $1 million home.
And that’s just the surface. (1/2) [View Twitter Thread]
“According to the complaints, Smith and Johnson conspired with 11 other people – including former NFL player Joshua Bellamy – to collectively request $24 million in PPP relief funds. Financial institutions funded at least $17 million of those loans, prosecutors said.”
Brooklyn Daily Eagle | Man accused of setting up phony business to get federal loans, grants