More than half of the money from the Paycheck Protection Program went to just 5% of recipients

US President Trump signs the Paycheck Protection Program and Health Care Enhancement Act at the White House in Washington in response to the coronavirus disease outbreak
More
Over half of the funds from the Paycheck Protection Program (PPP) went to just 5% of all recipients.
In the past, Republicans have said the program worked as intended, but banks reported record-breaking suspicions of business loan fraud in June and July.
The program has been fraught with problems including fraud and large companies receiving funds.
You can find more stories on the Business Insider homepage.
More than half of the funds from the U.S. paycheck protection program went to just 5% of recipients, according to new data released by the Treasury Department on Tuesday.
Scroll to continue with the content
display
Microsoft Cloud Society
Recognition is important
Pitstop is the Microsoft Cloud Society forum. Participate in discussions and work with a network that can help you get to the top.
LEARN MORE
Around 600 large corporations, including dozens of national chains, were given the $ 10 million maximum allowed under the program, according to the Washington Post, which had to file a lawsuit to get the data over a Freedom of Information Act request. Law firms and churches also received the maximum amount.
Treasury and Small Business Administration officials previously said the program worked as intended, with 87% of total loans totaling $ 150,000 or less. However, the new data shows that only 28% of the $ 552 billion distributed was for smaller loans.
The program was originally designed to help small businesses pay their employees after the coronavirus pandemic led to mass layoffs in March. The loans could also be granted (if they meet certain criteria), which makes them especially useful for companies that weren't sure about their repayment ability.
The PPP has been estimated to help save between 1.4 and 3.2 million jobs, but it has been plagued by fraud and other problems.
Read more: The winners of the next round of federal aid funds will be airlines, restaurants and companies owned by women or people of color. Here's what you can expect in the coming months.
A Florida man was charged in July of spending $ 3.9 million in the program on a Lamborghini and other lavish items.
In September House Democrats sent a memo saying the PPP was vulnerable to "fraud, waste or abuse" as normal oversight was lifted to get loans out earlier. In the same month, banks released a report that found suspicions of business loan fraud increased in both June and July when PPP loans were granted.
Read the original article on Business Insider
In this article
Election Center 2020

Last News

Trump ends term with ‘patriotic education’ report which makes excuses for slavery and calls anti-abortion movement ‘great reform’

In parting shot, Trump administration declares China's repression of Uighurs 'genocide'

If You Have This Mask, Get a New One Now, Experts Say

We made this ’60s meatloaf recipe from a Campbell’s soup ad — it was surprisingly good

Russia: Gas pipeline to Germany at risk after US sanctions

National Guard troops posing threat to Biden is 'absolutely ridiculous': Jeremy Hunt