#payroll protection program

Feds out to bust crooks who stole Billion$ from Payroll Protection Plan

Estimates ranging from $100 billion to over $400 billion have been stolen from Covid-19 unemployment and other pandemic relief programs. The United States Labor Department reported that nearly $90 billion in unemployment benefits alone could have been paid improperly due to fraudulent activities, according to PBS NewsHour. …Investigations have resulted in the seizure of millions of dollars and…

SBA Lenders Make $692 Million In Duplicate PPP Disbursements To 4,260 Borrowers

“SBA INSPECTOR GENERAL” “We determined SBA did not always have sufficient controls in place to detect and prevent duplicate PPP loans. As a result, lenders made more than one PPP loan disbursement to 4,260 borrowers with the same tax identification number and borrowers with the same business name and address. These disbursements totaled about $692 million for PPP loans approved from April 3…

Stimulus Relief Round 2 - Payroll Protection Plan

Most banks and credit unions have managed to weather the worst effects of the pandemic so far. The Small Business Association’s Payroll Protection Program (PPP) was helpful in many respects, at least in terms of limiting the volume of related business closures and employee layoffs.

Financial institutions faced several operational and brand-related challenges as they worked to process the deluge of PPP applications from business owners who were frantic to benefit from the government’s economic lifeline. With 5.2 million loans, worth $525 Billion, issued under the PPP initiative before it expired on August 8th, are banks and credit unions any more prepared to manage the massive loan forgiveness process that’s looming on the horizon? Have those institutions learned anything from the PPP application chaos that will ensure a more effective and less traumatic loan forgiveness experience, both for lenders and business owners?