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Americans Were Robbed. Again.
The unforgiving, forgiveness loans to keep Americans on the payroll of small businesses.
The paycheck protection program (PPP) loans introduced by Congress via the CARES Act, was intended to subsidize the payroll of the companies with 500 employees or less, and any funds remaining could go towards rent, mortgages, and utilities. The small businesses could apply through their bank and if they followed the PPP guidelines the loans would become government grants. Financial institutions administering the $525 billion in loans, earned 5% on $350,000 or less, 3% on $350,000 to $2 million, 1% on $2 million or more, and 1% interest on the loans ineligible for forgiveness. On the first-come, first-serve basis, some small businesses were able to access the funds, but the banks’ tiered fee structure led to favoring larger loans, inadequate background checks, systemic racism in lending practices, and at least $4 billion in fraudulent payments.
When the federal government was asked to reveal the recipients and the loan amounts, it stated the information was confidential, but the intense public scrutiny demanding transparency prompted the government to release some data in July. As officials review the financial documents they are uncovering applications with missing information, bogus businesses, companies receiving…
