![]() PPP loan information is available to the public through the SBA, and several groups have even published that information in the form of online searchable databases that anyone can use. “The SBA has very broad rules, very, very large leeway on what the lender had to request from the bar to get that guarantee secure,” said the SBA Louisiana District Director Michael Ricks. “With more time, we might have been able to implement some preemptive fraud measures, but we knew there would be some fraud,” said Kennedy.Īccording to the SBA, lenders are responsible for vetting applications and making sure the applicant is telling the truth in whatever way they see fit. John Kennedy says in the rush to get help to people in need as quickly as possible, Congress didn’t have time to build many safeguards against fraud into the program. It’s up to the SBA and the Justice Department to go after anyone caught stealing PPP money. If someone defaults, or can’t pay it back, the SBA will still reimburse the lender. Otherwise, the borrower is on the hook for the money. If approved, the SBA pays the lender back using federal funds. If the borrower can prove they used the money to pay employees and eligible expenses, they can ask the SBA for loan forgiveness. The lender got to keep a fee based on the size of the loan. A borrower applied for a PPP loan from a lender or bank. And I, I think we ought to prosecute every single one of them to the full extent of the law,” said Kennedy. To me, it’s like looting after a hurricane. “I don’t know why it is that that some people take advantage of a program like this in a time of crisis. She’s accused of making up fake businesses to collect more than $20,000 through a PPP loan and another $500,000 in prepaid debit cards through unemployment claims. In Louisiana, a federal grand jury recently indicted a Plaquemine woman named Lestreonia Rodrigue on fraud charges. The Department of Justice confirms they are looking into reports of PPP fraud across the nation. However, not everyone taking part in the federal program was looking to keep their business doors open. It was this difficult road that we had about a week, but our bankers got it done and, and our businesswomen and businessmen stepped up to the plate and took advantage of it,” said Sen. “The Paycheck Protection Program saved millions of jobs. Each loan paid out was guaranteed using taxpayer money. Nearly 11.5 million people filed applications, resulting in more than $792 billion worth of loans. The forgivable loans were meant to cover payroll for employees and, later, other eligible expenses at a time when customers weren’t coming in. (WAFB) - The Paycheck Protection Program, known as PPP, provided a lifeline for millions of business owners when the pandemic was at its worst.
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