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.
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.
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.
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.