Paycheck Protection Program Archives

Small Businesses Struggle to Repay Federal Loans as Inflation and Interest Rates Soar

November 27, 2024 Daily Caller News Foundation

A Federal Reserve program aimed at bolstering small and medium-sized businesses may now be financially burdening some of them, experts told the Daily Caller News Foundation.

The Fed introduced the Main Street Lending Program (MSLP) in 2020, which provided loans to small and mid-sized businesses that were impacted by the COVID-19 pandemic. Some business owners are having difficulty affording to pay off the loans amid rising interest rates and a surge in inflation since 2020, experts told the DCNF.

Overpayments Account for Nearly 75 Percent of Federal Improper Payments

July 1, 2024 The Center Square

The federal government reported $236 billion in improper payments in fiscal year 2023, with the vast majority coming from overpayments, according to a new watchdog report.

A U.S. Government Accountability Office report found 74% of improper payments – payments that shouldn’t have been made or were made in the wrong amount – were overpayments. Overpayments accounted for $175.1 billion of the total amount of improper payments in 2023. Overpayments are payments “in excess of what is due, and for which the excess amount, in theory, should or could be recovered,” according to the report.

Fraud Report: $38 Million in Pandemic Relief Aid Sent to Dead People

May 23, 2023 The Center Square

Data scientists from the Pandemic Response Accountability Committee identified nearly $38 million in potentially improper or fraudulent pandemic loans were obtained using Social Security Numbers of dead people.

The loans were made through both the COVID-19 Economic Injury Disaster Loan program and Paycheck Protection Program.

Report Claims Unions Skirted Rules to Receive Paycheck Protection Program Loans

February 7, 2022February 6, 2022 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.

Commentary: $800 Billion Stimulus Program Failed Terribly and Mostly Benefited the Wealthy, MIT Economist Finds

January 22, 2022January 21, 2022 Minnesota Sun Staff

The federal government has spent an astounding $42,000 per federal taxpayer on so-called “stimulus” efforts since the pandemic began. Where did all that money go? Well, as it turns out, one of the biggest stimulus programs, the Paycheck Protection Program, failed miserably.

At least, that’s the finding of a new study from MIT economist David Autor and nine coauthors. They examined the $800 billion Paycheck Protection Program, which gave “loans,” most of which won’t have to be paid back, to businesses. It was created by Republicans and Democrats in Congress alike in hopes of helping businesses preserve their employees’ jobs for the duration of the COVID-19 crisis.

The study tracks the money to see where it ended up and what it achieved. The results… aren’t pretty.

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

January 11, 2022January 10, 2022 Minnesota Sun 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.

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

December 7, 2021December 6, 2021 Minnesota Sun 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.

Hundreds of Millions in Paycheck Protection Program Loans Went to CCP-Backed Firms, as U.S. Small Businesses Went Under

May 4, 2021May 3, 2021 Minnesota Sun 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, our award is going to the United States Small Business Administration and Treasury Department for awarding at least $200 million, but as much as $420 million, to Chinese Communist Party-linked businesses by way of the Paycheck Protection Program, intended to assist U.S. small businesses that were devastated by the coronavirus pandemic, widely believed to have originated in China.

A report from the Horizon Advisory strategic consulting group illustrates how negligible congressional oversight allowed at least 125 Chinese firms to “take advantage of the international disaster” by benefitting “directly from U.S. investment and relief measures.”

Commentary: Did PPP Work?

April 1, 2021March 31, 2021 Minnesota Sun 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.

Republicans Will Put PPP Funding Back on the Floor for a Vote Despite Democrats’ Efforts to Block It, Sen. Blackburn Says

October 22, 2020October 21, 2020 Jason M. Reynolds

U.S. Sen. Marsha Blackburn (R-TN) told CNBC’s SquawkBox on Wednesday that Republicans will try again to pass their bill that would provide PPP and vaccine funding despite Democrats’ attempts to block the efforts.

CNBC asked Blackburn if she would vote for a deal if the White House and the Treasury Department reached an agreement with House Speaker Nancy Pelosi (D-CA-12).

Small Business Administration Gave Loans to Multi-Million Dollar Companies

July 10, 2020July 9, 2020 Minnesota Sun Staff

The U.S. Small Business Administration (SBA) and the U.S. Treasury Department this week released the names of 4.9 million Paycheck Protection Program (PPP) loan recipient businesses and nonprofits that received $150,000 or more.

The mostly forgivable PPP loans were funded through the federal Coronavirus Aid, Relief and Economic Security (CARES) Act.

SBA: 2.2 Million Loans, $175B Issued So Far in 2nd Round of Paycheck Protection Program

May 4, 2020May 3, 2020 Minnesota Sun Staff

The Small Business Administration and the U.S. Treasury revealed Sunday that the second round of the Paycheck Protection Program has issued 2.2 million loans, totaling $175 billion.

PPP loans are forgivable loans for small businesses to offset some of the losses experienced by the response to the COVID-19 pandemic. The loans are meant to provide a direct incentive for small businesses to keep their workers on the payroll.

Los Angeles Lakers Return $4.6 Million Small Business Loan

April 29, 2020April 28, 2020 Anthony Gockowski

The Los Angeles Lakers received and then returned a forgivable loan of roughly $4.6 million under a federal program designed to help small businesses during the coronavirus pandemic.

Sen. Sherrod Brown Calls for Investigation into Reports Paycheck Protection Program Prioritized ‘Wealthier Clients’

April 28, 2020April 28, 2020 Minnesota Sun Staff

U.S. Sen. Sherrod Brown, D-Ohio, joined two other Democrats in calling for an investigation into reports some Paycheck Protection Program (PPP) lenders are prioritizing “larger and wealthier clients.”

In a letter to Small Business Administration (SBA) Inspector General Mike Ware, the senators allege some lenders “have prioritized the applications of their larger and wealthier clients to the detriment of smaller [businesses] adversely impacted by the coronavirus pandemic.”

U.S. Sens. Chuck Schumer, D-New York, and Ben Cardin, D-Maryland, joined Brown, the ranking member of the Senate Committee on Banking, Housing, and Urban Affairs, in sending the letter.

Wells Fargo Bows Out of Small Business Bailout Program After Receiving $10 Billion of Loan Applications

April 8, 2020April 7, 2020 Minnesota Sun Staff

One of the largest banks in the United States announced that it is no longer accepting applications for a federal program aimed at rescuing small businesses affected by the coronavirus pandemic.

Wells Fargo has stopped accepting new applications for the government’s Paycheck Protection Program, an initiative created by the government to assist U.S. businesses that employ fewer than 500 people. The bank’s decision came after it was inundated with billions of dollars in loan requests since Friday.