The rush to distribute hundreds of billions in Paycheck Protection Program (PPP) loans earlier this year opened the door for massive fraud, and more and more of those scams are beginning to surface.
The New York Times reported earlier this month, “Four months after the federal government’s signature coronavirus relief program for small businesses expired, investigators and lawmakers have only scratched the surface of schemes that illicitly tapped its forgivable loans.” According to the outlet, “The program’s hastily drafted and frequently revised rules, its removal of normal lending guardrails and governmental pressure to swiftly approve applications created the ideal conditions for thievery to thrive.”
The new coronavirus relief package recently signed by President Donald Trump includes $285 billion to reopen the program.
PPP loans are intended to provide a direct incentive for small businesses to keep their employees on the payroll during the pandemic-induced recession.
Stacy Cowley, a finance reporter for the Times who has researched the program extensively, described the first round of loans as “a $523 billion government giveaway of largely free money” that “attracted quite a few scammers and grifters.”
Fraud And Scams Coming To Light Months After First Round Of PPP Loans Expired | The Daily Wire