As the coronavirus pandemic rages on, many small businesses in the United States are worried about their survival. But at the same time, there have also been reports of some companies abusing the Paycheck Protection Program — and the office of the Small Business Administration’s inspector general, according to Business Insider’s Graham Rapier, has found likely examples of PPP-related fraud.
Passed by Congress earlier this year as part of the CARES Act, the PPP was designed to make it easier for businesses to keep employees on their payrolls and avoid laying them off. Rapier reports that the IG, in a preliminary review of the PPP, found “strong indicators of widespread fraud.”
“Specifically, its investigation into hundreds of hotline complaints found $250 million in loans and grants to ‘potentially ineligible recipients’ and another $45.6 million in potential double payments,” according to Rapier. “In total, the potential wrongdoing totals less than 1% of the program’s total $520 billion in loans provided to about 5.03 million businesses since March.” Continue reading.