Mounting fraud cases have highlighted how the Small Business Administration’s oversight of the PPP and EIDL Loan Programs has been a magnet for fraud. The Justice Department has brought criminal charges on 119 cases related to PPP Loan fraud since the beginning of last April.
These cases are just beginning.
Those charges allege that the business sought $445M in PPP funds. Many cases are still under seal and yet to be brought. The SBA has disbursed $755B in PPP Loans and another $202B in EIDL’s, so far.
At least one SBA employee has been charged with fraud for taking bribes.
The number of potentially questionable loans is large. An internal review last fall by the SBA showed over $2B in loans worth an estimated $189B that potentially, weren’t in compliance. This doesn’t mean that they were fraudulent. It just means that there is a potential problem.
Currently The SBA has 91 active PPP Loan investigators and another 121 working the EIDL Loans which means they don’t have the resources necessary to properly investigate the issue. Think about it. Almost $1T in PPP’s and EIDL’s went out, and so far they have only brought charges on 119 cases totaling some $445M in loans. Do the math. That’s not very much.
The SBA has received over 150,000 complaints on their hotline in reference to these loans. We’ll see if they’re given the resources necessary to properly investigate these claims.
Let me leave you with this.
Three more of our clients received their Employee Retention Credit payments yesterday. This has become a windfall for many.
If you haven’t yet signed up for our Employee Retention Credit Consulting and Preparation program then please do so at the following web address.
I keep reading about how our present administration is going to raise taxes. The current information is sketchy at best. We keep reading above increases in everything from corporate to individual to estate taxes, but one thing is certain.
With them giving out as much money as they are, they’re going to need to raise taxes to get some of it back.
They’re coming my Brothers and Sisters. Don’t tease yourself for one miserable second. They’re coming, and we will all need to be ready when the other shoe drops.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. If there is anything you need, whether you are a current client or not, you have but to ask. I’m here, and I remain,
Accounting Solutions Ltd.
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