Staff Reports
The outbreak of the pandemic has raised various issues that members of Congress have not yet addressed. One of these is the corruption and fraud in the Paycheck Protection Program of the Small Business Association. The program was designed to help small businesses avoid financial collapse, but it has since become a disaster.
The lack of leadership and preparedness at the highest levels of government is unacceptable in the United States. Citizens should be demanding accountability from their leaders.
The heads of major businesses urged the government to investigate and prosecute individuals who stole from public sector entities (PPPs) by using their under $100,000 loans. They noted that the Small Business Administration (SBA) should look into the operations of fintech companies such as Blueacorn, Womply, and Kabbage, which enabled clients to commit such fraud.
Members of Congress, such as Joni Ernst of Iowa, should lead the investigation into how these financial technology companies were able to steal from their customers.
Congress Needs to Press SBA to Investigate PPP Fraud https://t.co/ZyXG81XK0c
— RedState (@RedState) June 12, 2023
Investigations should also look into how Kabbage and Womply were able to get around the law by claiming that they received funds from their partner lenders. In reality, they paid the majority of the fees that the SBA allocated them. The agency should have revoked the participation of Womply's CEO, who is a convicted felon.
While Blueacorn was able to receive over a billion dollars in government-funded processing fees for administering PPP loans, nobody has uncovered how the financial technology firms were able to circumvent the SBA's regulations and enrich themselves.
What is the reason behind Congress' inaction on the issue of theft and fraud within the PPP Corporation of the SBA? Taxpayers deserve swift answers, and the agency must be reformed to stop this type of abuse. The Treasury should also place liens on the fraudsters who have already stolen from the IRS.
The measures taken by Congress will help recover the taxpayers' money and prevent another disaster like the one that occurred with the Paycheck Protection Program. Members of Congress should put aside their partisan politics and focus on the issues that need to be resolved.
Source: Red State
