Dear Readers,

According to the Select Subcommittee on the Coronavirus Crisis on
the Paycheck Protection Program (PPP), there’s a possibility that
billions of dollars might have been diverted to fraud, waste and abuse.
Surprise. Surprise.

The committee’s analysis identified 10,856 loans in which the
borrower received multiple PPP loans, for a total of more than $1
billion in outstanding loans. The analysis was based on detailed
data provided by the Treasury Department and the Small Business
Administration (SBA).

In addition to double dippers, the committee found 613 PPP loans,
amounting to $96.3 million, provided to borrowers who are ineligible
to receive PPP funds because they have been debarred or suspended
from doing business with the federal government.

“The subcommittee’s analysis shows that PPP helped millions of
small businesses and non-profit organizations stay afloat during the
coronavirus crisis, but a lack of oversight and accountability from the
SBA and Treasury may have led to billions of dollars being diverted
to fraud, waste, and abuse, rather than reaching small businesses truly
in need,” Rep. James Clyburn (D-S.C.) wrote in a letter to Treasury
and SBA.

It’s a great thing that our government has sought to keep businesses
afloat and employees off the unemployment line during the
COVID-19 pandemic. We should all be proud of that. And rapidly
getting money out to the people and businesses that desperately need
it can be fraught with landmines.

But clearly Treasury and the SBA need to do a much better job when
it comes to making sure our tax dollars go to the intended recipients.

Mark Lowery
Editorial Director
Dodd Frank Update