New PPP Fraud Map, Giuliani Grabs A Bailout
Last week, more Paycheck Protection Program (PPP) recipients were revealed, including the former executive of SAExploration who was recently arrested on charges of wire and securities fraud. Recipients also included nearly 40 law enforcement organizations and an invisible company owned by President Trump’s personal attorney, Rudy Giuliani. Meanwhile, PPP fraud cases continue to come to light across the country while the Small Business Administration (SBA) has yet to release loans of 150 thousand dollars or less to the public.
Following its limited uptake and recent bailouts to Trump allies and donors, the Fed issued new guidance for the Main Street Lending Program (MSLP). This development comes as a new report found that 40% of restaurants are expected to close within the next 6 months without additional coronavirus aid.
BAILOUT RECIPIENTS INCLUDE A FORMER BIG OIL CEO UNDER INVESTIGATION, LAW ENFORCEMENT ORGS, AND RUDY GIULIANI
“According to government records, the loan, which was part of the Small Business Administration’s Payroll Protection Program coronavirus relief package, was awarded on April 28 to a company called World Capital Payroll Corp., a registered “S Corp” headquartered at 445 Park Avenue in Manhattan. Those records show that the company received between $150,000 and $350,000 in taxpayer-backed federal funds, which can be fully forgiven by the government if the company proves they were put toward payroll and related expenses. (Giuliani’s new private law firm is registered at that same address.)”
@HirokoTabuchi | “Despite being the subject of an active investigation, the Trump administration awarded the company, SAExploration, a $6.8 million Paycheck Protection Program taxpayer-backed loan in May. h/t @accountable_us” [View Tweet]
Salon | Call for investigation: Companies linked to six Trump Cabinet members got PPP loans
SMALL BUSINESSES, ESPECIALLY RESTAURANTS, CLOSING AT ALARMING RATES
Mashed | 100,000 restaurants could close by the end of the year. Here’s why
“…Because according to the National Restaurant Association, after nearly six months into the pandemic, 1 out of every 6 restaurant has closed — either permanently or long term — as a result, nearly 3 million restaurant workers don’t have work. The industry group also estimates that by the end of 2020, the country could see the shutdown of 100,000 restaurants and a loss $240 billion in sales.”
New York Post | Nearly 60 percent of COVID-19 business closures are permanent: report
Fox Business | 40% of restaurants to close within 6 months without more coronavirus aid
Bloomberg: Landlords Might Wipe Out a New Wave of Small Businesses
PPP FRAUD ROUNDUP
Politico Morning Money | “First Look: New PPP map — Government watchdog group Accountable.US is ‘launching a new Bailout Fraud Tracker Map which tracks reports of abuse and waste in the [Paycheck Protection Program] across the country.’”
Atlanta Journal-Constitution | Billions in low-dollar stimulus loans may never be scrutinized
“Ware’s nonprofit is among millions of loan recipients that may never have to answer questions from regulators about how they spent their PPP money and could even see their loans summarily forgiven under a bipartisan bill gaining traction in Congress. And Bank OZK may be among thousands of lenders that will never have to explain why they handed large sums of cash to some applicants with few questions asked — in this case, a woman whose filing for bankruptcy protection was repeatedly dismissed because she failed to make required plan payments.”
NBC 4 New York | NJ Attorney Indicted With Defrauding $9M in COVID-Relief Scheme: Feds
Houston Chronicle | Texas woman charged with $2 million fraud in COVID relief loan
Fox Business | Fraud reports rise as banks dole out PPP loans, report finds
MSLP LOANS AREN’T REACHING MID-SIZED BUSINESSES
Philadelphia Inquirer | Banks snub Fed’s $600 billion lifeline for Main Street firms
“Some of the nation’s biggest lenders have demanded such crushing terms that discussions have stalled from the get-go, while other banks have decided not to participate at all. That’s meant the take-up for the $600 billion program is just 0.2%, threatening to undercut the economic recovery and efforts to protect jobs.”
CNN | The US government needs to save Main Street, not just Wall Street
Bloomberg | Powell Says Fed Working on Changes to Main Street Program
Wall Street Journal: Fed Issues New Bank Guidance to Improve Main Street Loan Access