According to a new watchdog report, a Small Business Administration program aimed at keeping entrepreneurs afloat during the coronavirus pandemic may have sent billions of dollars to scammers and applicants. not enough condition.
In a report released Wednesday, SBA Inspector General Hannibal “Mike” Ward said that more than $ 78 billion in aid were approved for businesses under the agency̵7;s Economic Injury Disaster Loan Program This may have been available to businesses that were potentially fraudulent or not eligible.
COMPANIES RETURNED $ 30 BILLION OF VIRUS’S TRUSTED LOANS FROM PPP
The report shows $ 58 billion disbursed in multiple loans to businesses using the same IP address, email address, bank account, or the same physical address. Approximately $ 13.4 billion was transferred to other accounts than those listed in the initial loan applications, and approximately $ 1.1 billion went to potential businesses that were not eligible. .
The fraud stems from the agency’s rush to provide aid to businesses suffering from flu; In order to speed up the process, Ward writes, the SBA has “lowered the railings,” which significantly increases the risk of program fraud. “
TRUMP ADMIN RELATED TO THE NAME OF ALSO 700,000 PPP OTHER STUDENTS
Within a few days, the agency received an unprecedented number of loan applications: On March 31, it received 680,000 applications, the highest number ever received in a day. As of April 10, the agency had more than 4.5 million applications that need classification. To speed up the process, SBA employees are given an average of 15 minutes per application to make their decision.
Under the program, businesses can get a forgivable loan of up to $ 10,000. The agency distributed about $ 211 billion in loans during the virus-induced crisis.
But SBA Administrator Jovita Carranza dismissed the report, saying in a letter that it “exaggerated the risk of fraud, waste and abuse” and pointed out that it did not “fully describe it. confirms that the SBA has provided an unprecedented amount of disaster assistance. “
SECRET FOX BUSINESS SECURITY BY CLICK HERE