"It is imperative that limited taxpayer dollars go to help legitimate small businesses," he said.As investigations got underway, the SBA this week processed hundreds of thousands of PPP loan applications after Congress approved an additional $320 billion in new funding last week to replace $350 billion that was exhausted April 16.On Friday, JPMorgan Chase, the largest bank in the country, said 211,000 of its loans were approved in the program's second round totaling about $15 billion. As of July 15, the agency had approved 2.6 million loans for a total of $150 billion, according to an The report released Tuesday described roughly 6,100 disaster loans and about 20,000 advance grants sent to potentially ineligible businesses. By Maria Medina July 24, 2020 at 11:29 pm. As investigations got underway, the SBA this week processed hundreds of thousands of PPP loan applications after Congress approved an additional $320 billion in … /Flags 34 /CapHeight 717 It also offers cash-advance grants worth up to $10,000.Although it eventually processed millions of disaster loans at a time of severe economic vulnerability, the EIDL program’s rollout was hampered by The program was activated March 12 when small businesses were just beginning to come to grips with a near-complete state-by-state shutdown in in-person commerce.
"Our analysis already has found indicia of fraud among certain loan applications submitted in connection with the program.”A Warren aide said the SBA IG's response indicated that the senator's concerns were valid. /Filter /FlateDecode We use cookies and other technologies to customize your experience, perform analytics and deliver personalized advertising on our sites, apps and newsletters and across the Internet based on your interests. << See our We rely on readers like you to uphold a free press. /FirstChar 0 (Updates with Justice Department unit leading investigations in sixth paragraph) Published on April 30, 2020, 5:00 PM EDT Updated on April 30, 2020, 5:42 PM EDT Marco Rubio (R-Fla.), who chairs the Senate Small Business and Entrepreneurship Committee, called the inspector general’s findings “alarming” and pointed to fraud detection measures that his office supported when the coronavirus relief legislation known as the Cares Act was being drafted.“The purpose of COVID-19 EIDL loans and advances are to aid eligible, legitimate American small entities with both a quick injection of capital and long-term financing for working capital needs brought on by the pandemic,” Rubio said in a statement. It did so by hiring about 1,200 loan evaluators, outsourcing much of its work to Rocket Loans and other consultants, and streamlining internal loan approval processes. and House Small Business Chairwoman Nydia Velázquez (D-N.Y.), SBA Inspector General Hannibal "Mike" Ware said his office has already initiated dozens of investigations involving complaints of fraud. /FontStretch /Normal
<< 1 0 obj
/Encoding /WinAnsiEncoding >> 4 0 obj The response came after Warren and Velázquez asked the SBA and Treasury Department inspectors general to investigate the Paycheck Protection Program.The government watchdog tasked with policing the Small Business Administration has informed lawmakers that he has kicked off investigations into rescue programs launched in the wake of the coronavirus outbreak and will release an initial report in the coming days.In a letter to Sen. Elizabeth Warren (D-Mass.) /BaseFont /AAAAAB+Helvetica
In administering EIDL, SBA strives to serve small businesses as efficiently and effectively as possible. >> /LastChar 121 /FontDescriptor 2 0 R
x��yy|E�wU�sd&�s��dr�d�$39$�@�A$!������BPA�H�E��,���� ���Z��}=VHz~OUOBtw��Ǜ|��������s� ��A��ʇ������"�[�w��� �ykЭ����q�������|Ҥ��3|j�냱���ϟ��,߁��
“I’m proud to have worked to secure language in the CARES Act to ensure the federal government has the tools to identify and go after fraudulent activity while protecting taxpayer dollars.”The most important news stories of the day, curated by Post editors and delivered every morning.The most important news stories of the day, curated by Post editors and delivered every morning.Reporter covering the defense industry and government contractors SBA disaster loan investigation reveals rampant fraud: Report More than 5,000 complaints have been made by financial institutions /ItalicAngle 0 It received several million applications in a matter of days.At first, the program did not address loan applications in a timely manner. “The reality is that SBA has developed and implemented a comprehensive, rigorous, end-to-end infrastructure to reduce the risk of fraud in the EIDL COVID program,” Carranza wrote.The Economic Injury Disaster Loans (EIDL) program was the first federal small-business assistance program activated to fight the economic crisis caused by the coronavirus pandemic. It also criticized the agency for allegedly failing to put in place internal controls to prevent abuse.Among the potentially fraudulent transactions detailed in the report are $1.9 million in pending SBA transactions made to accounts outside the United States, roughly 3,000 “suspicious” transactions worth $73 million that were flagged by a banking service provider. /FontFamily (Helvetica) Planned Parenthoods received $80 million in PPP loans. ... U.S. Small Business Administration. Please enable cookies on your web browser in order to continue.