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PPP Loans for Billions Have Fraud Risk, Oversight Panel Says

  • Panel identifies $1 billion in duplicate loans in new report
  • Select subcommittee Democrats analyzed data for virus relief
Brooklyn Reaches Second-Highest Total Of Covid-19 Cases In NYC
Photographer: Stephanie Keith/Bloomberg
Updated on

More than $1 billion in federal coronavirus relief went to U.S. small businesses that received multiple loans, although that wasn’t allowed by the stimulus program, according to an analysis by congressional subcommittee Democratic staff, which also raised red flags for potential fraud with thousands of other companies.

The oversight panel staff also found that firms got relief even though they were barred from doing business with the federal government or previously flagged for performance issues, as did borrowers that provided incomplete information, according to a memo to members of House Select Subcommittee on the Coronavirus Crisis.