A preliminary analysis released by the House Select Subcommittee on the Coronavirus Crisis, which released the report as part of a Subcommittee hearing with Treasury Secretary Steven Mnuchin, has found that more than $1 billion in emergency coronavirus aid relief went to businesses that violated Paycheck Protection Program rules and “double dipped” for more cash.
More than 10,000 applicants received more than one loan, according to the analysis. More than 600 loans totaling more than $100 million
The Subcommittee’s finding “suggests a high risk that PPP loans may have been diverted from small businesses truly in need to ineligible businesses or even to criminals,” according to the report.
“Secretary Mnuchin has previously testified that, given the need to get relief money out quickly, it was inevitable that Treasury, and I quote, ‘ran into a lot of issues,’” Chairman James Clyburn, chairman of the Select Subcommittee on the Coronavirus Crisis, wrote in his opening statement. “That is a false dichotomy: Taxpayers should not have to choose between quickly getting aid to those who need it and wasting federal funds, and there are simple steps that could have been taken to improve oversight and reduce fraud.”
Yesterday, the Select Subcommittee on the Coronavirus Crisis released eight weeks of White House Coronavirus Task Force reports that indicate the Trump administration failed to respond to the crisis effectively.
“The Task Force reports released today show the White House has known since June that coronavirus cases were surging across the country and many states were becoming dangerous ‘red zones’ where the virus was spreading fast,” said Chairman Clyburn.