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
“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.”
“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
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
@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.”