Quote:
Originally Posted by Lanny_McDonald
Then why call them loans? Why not just call them grants or incentives? Why call something one thing when you really mean another? It was all bull#### and dreamed up as a way for companies and individuals to bilk more money out of the system. If you seriously support PPP loans (sorry, grants) then you clearly aren't paying attention to how they are being abused. It's been scary how badly this system has been misused and abused.
"Tens of thousands of approved and disbursed loans were made to borrowers for amounts that exceeded the maximum allowed based on the number of employees and compensation rates as defined in the CARES Act.
Tens of thousands of loans that matched a Do Not Pay data source record indicating potential loan ineligibility.
Hundreds of businesses that exceeded the greater of 500 employees or the SBA size standard for number of employees in the industry obtained PPP loans that may have been erroneously approved.
We found thousands of businesses obtained PPP loans with Tax Identification Numbers (TINs) that were not registered until after that date indicating the business was created after the fact."
A $659B program that has been resulted in free money to grifters around the country because the authorities don't have the manpower to chase down the bad guys. Free money for the taking.
"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 through August 9, 2020."
And what was the Republican response to this gong show?
"Did Congress stop the program or demand more oversight? No. Congress extended the PPP. "
This program is waaaaaay worse than anything you'll see in SLF. This isn't like some well off family scamming some Pell grants here or there to minimize their loan load, PPP was a gross abuse of government funds. At least in SLF the government was seeing money come back from people who acknowledged their responsibilities and paid their loans. The same cannot be said for PPP. |
The bolded accounts for .1%. Yeah sure there were abusers like with any government program, but the ppp loans directly helped my young adult step kids and their friends to keep getting paid early in the pandemic more than any other program did. There definitely was some good to come out of it. It was a better idea and more directly helpful to people who needed it than giving everyone $1000.
I don't know why they called it a loan, and not a grant, but it was pretty clear that it was a conditional grant that had to be paid back if they didn't use it for the intended purpose.