Paycheck Protection Program Archives

Overpayments Account for Nearly 75 Percent of Federal Improper Payments

July 1, 2024 The Center Square

The federal government reported $236 billion in improper payments in fiscal year 2023, with the vast majority coming from overpayments, according to a new watchdog report.

A U.S. Government Accountability Office report found 74% of improper payments – payments that shouldn’t have been made or were made in the wrong amount – were overpayments. Overpayments accounted for $175.1 billion of the total amount of improper payments in 2023. Overpayments are payments “in excess of what is due, and for which the excess amount, in theory, should or could be recovered,” according to the report.

Three People in Michigan Charged in $6 Million Pandemic Fraud Scheme

June 3, 2023June 2, 2023 The Center Square

Eight people were charged for alleged roles in a $6 million fraud scheme targeting multiple pandemic relief programs, announced United States Attorney Dawn N. Ison.

Since COVID began, foreign and domestic criminals have targeted government assistance programs often using stolen identities bought from the dark web. The indictment says the defendants caused fraudulent unemployment insurance claims, fraudulent Paycheck Protection Program loan applications, and fraudulent Economic Injury Disaster Loan applications to be submitted for multiple individuals and business entities.

Fraud Report: $38 Million in Pandemic Relief Aid Sent to Dead People

May 23, 2023 The Center Square

Data scientists from the Pandemic Response Accountability Committee identified nearly $38 million in potentially improper or fraudulent pandemic loans were obtained using Social Security Numbers of dead people.

The loans were made through both the COVID-19 Economic Injury Disaster Loan program and Paycheck Protection Program.

Commentary: A Modicum of Justice in Michigan for a COVID-Exploiting Teachers’ Union

March 21, 2023March 20, 2023 RealClearWire

Group of young students at table, reading and wearing masks

America’s teachers’ unions exploited the COVID-19 pandemic to maximum effect, leveraging school lockdowns for which they lobbied to pursue political demands stretching far beyond their salaries and benefits – and helping drive a $190 billion windfall in taxpayer dollars to K-12 schools.

The public bore that cost, in children’s learning loss and mental health struggles; in the burdens the closures placed on parents already struggling to make ends meet in an economy crippled by government decree; and on the literal costs that the teachers’ unions passed on to taxpayers.

Michigan’s Largest Teachers Union Must Reimburse Taxpayers for Wrongfully Taking COVID Relief Aid

March 7, 2023March 6, 2023 The Center Square

Michigan’s largest teachers union and its health insurance affiliate must repay the U.S. government more than $200,000 after taking $12.5 million in federal loans for which they were ineligible.

Lawmakers intended Paycheck Protection Program loans to help small businesses afford to pay their employees during the initial COVID-19 shutdowns.

Report Claims Unions Skirted Rules to Receive Paycheck Protection Program Loans

February 7, 2022February 6, 2022 The Center Square

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.

Commentary: $800 Billion Stimulus Program Failed Terribly and Mostly Benefited the Wealthy, MIT Economist Finds

January 22, 2022January 21, 2022 Michigan Star Staff

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.

Small Business Administration Not Taking Direct Action Against Partner Lenders That Issued Billions in Fraudulent Paycheck Protection Program Loans

January 11, 2022January 10, 2022 Michigan Star Staff

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.

Fraudsters Used Paycheck Protection Program Loans for Bentleys, Diamonds, Luxury Homes: Watchdog

December 7, 2021December 6, 2021 Michigan Star Staff

woman on laptop with eye glasses and mug next to her

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.

Nearly 300 Venues in Michigan Awarded $280M in Grants

October 26, 2021October 26, 2021 The Center Square

When the COVID-19 pandemic struck Michigan, Gov. Gretchen Whitmer shuttered much economic activity in Michigan without compensation for lost revenue. While groceries stores stayed open, venues designed for packing people into spaces like theaters, museums, and zoos to enjoy art shuttered for longer than five months.

So the U.S. Small Business Administration administered over $16 billion nationwide through the Shuttered Venue Operators Grantees (SVOG) nationwide. In Michigan, 279 businesses ranging from museums to art centers to theaters have been promised a total of $280 million, with amounts from $3,500 to up to $10 million.

Hundreds of Millions in Paycheck Protection Program Loans Went to CCP-Backed Firms, as U.S. Small Businesses Went Under

May 4, 2021May 3, 2021 Michigan Star Staff

The Golden Horseshoe is a weekly designation from Just the News intended to highlight egregious examples of wasteful taxpayer spending by the government. The award is named for the horseshoe-shaped toilet seats for military airplanes that cost the Pentagon a whopping $640 each back in the 1980s.

This week, our award is going to the United States Small Business Administration and Treasury Department for awarding at least $200 million, but as much as $420 million, to Chinese Communist Party-linked businesses by way of the Paycheck Protection Program, intended to assist U.S. small businesses that were devastated by the coronavirus pandemic, widely believed to have originated in China.

A report from the Horizon Advisory strategic consulting group illustrates how negligible congressional oversight allowed at least 125 Chinese firms to “take advantage of the international disaster” by benefitting “directly from U.S. investment and relief measures.”

Commentary: Did PPP Work?

April 1, 2021March 31, 2021 Michigan Star Staff

As the Small Business Administration official who oversaw the Paycheck Protection Program, I’m often asked, “Did PPP actually work?”

PPP was a response to state and local governments mandating shutdowns as a way to slow the spread of COVID-19. The premise was this: Encourage lenders to provide small businesses and nonprofits with forgivable, SBA-guaranteed loans over an eight-week period as a payroll-support measure. This small business financial support was designed to help prevent mass unemployment as Americans were confined to their homes.

Forgivable PPP Loans May Have State Tax Implications for Michigan Businesses

February 8, 2021February 7, 2021 The Center Square

Michigan businesses can accept their forgiven pandemic loans without worrying about paying federal taxes, but it’s not yet clear if they’ll owe state taxes.

More than 121,000 Michigan businesses took federal forgivable Paycheck Protection Program (PPP) loans valued at approximately $15.7 billion.

Republicans Will Put PPP Funding Back on the Floor for a Vote Despite Democrats’ Efforts to Block It, Sen. Blackburn Says

October 22, 2020October 21, 2020 Jason M. Reynolds

U.S. Sen. Marsha Blackburn (R-TN) told CNBC’s SquawkBox on Wednesday that Republicans will try again to pass their bill that would provide PPP and vaccine funding despite Democrats’ attempts to block the efforts.

CNBC asked Blackburn if she would vote for a deal if the White House and the Treasury Department reached an agreement with House Speaker Nancy Pelosi (D-CA-12).

Small Business Administration Gave Loans to Multi-Million Dollar Companies

July 10, 2020July 9, 2020 Michigan Star Staff

The U.S. Small Business Administration (SBA) and the U.S. Treasury Department this week released the names of 4.9 million Paycheck Protection Program (PPP) loan recipient businesses and nonprofits that received $150,000 or more.

The mostly forgivable PPP loans were funded through the federal Coronavirus Aid, Relief and Economic Security (CARES) Act.

SBA: 2.2 Million Loans, $175B Issued So Far in 2nd Round of Paycheck Protection Program

May 4, 2020May 3, 2020 Michigan Star Staff

The Small Business Administration and the U.S. Treasury revealed Sunday that the second round of the Paycheck Protection Program has issued 2.2 million loans, totaling $175 billion.

PPP loans are forgivable loans for small businesses to offset some of the losses experienced by the response to the COVID-19 pandemic. The loans are meant to provide a direct incentive for small businesses to keep their workers on the payroll.

Los Angeles Lakers Return $4.6 Million Small Business Loan

April 29, 2020April 28, 2020 Anthony Gockowski

The Los Angeles Lakers received and then returned a forgivable loan of roughly $4.6 million under a federal program designed to help small businesses during the coronavirus pandemic.

Sen. Sherrod Brown Calls for Investigation into Reports Paycheck Protection Program Prioritized ‘Wealthier Clients’

April 28, 2020April 28, 2020 Michigan Star Staff

U.S. Sen. Sherrod Brown, D-Ohio, joined two other Democrats in calling for an investigation into reports some Paycheck Protection Program (PPP) lenders are prioritizing “larger and wealthier clients.”

In a letter to Small Business Administration (SBA) Inspector General Mike Ware, the senators allege some lenders “have prioritized the applications of their larger and wealthier clients to the detriment of smaller [businesses] adversely impacted by the coronavirus pandemic.”

U.S. Sens. Chuck Schumer, D-New York, and Ben Cardin, D-Maryland, joined Brown, the ranking member of the Senate Committee on Banking, Housing, and Urban Affairs, in sending the letter.

Wells Fargo Bows Out of Small Business Bailout Program After Receiving $10 Billion of Loan Applications

April 8, 2020April 7, 2020 Michigan Star Staff

One of the largest banks in the United States announced that it is no longer accepting applications for a federal program aimed at rescuing small businesses affected by the coronavirus pandemic.

Wells Fargo has stopped accepting new applications for the government’s Paycheck Protection Program, an initiative created by the government to assist U.S. businesses that employ fewer than 500 people. The bank’s decision came after it was inundated with billions of dollars in loan requests since Friday.