Newly-Released, Limited Data Show Admin Failure on PPP

Newly-Released, Limited Data Show Admin Failure on PPP

WASHINGTON, D.C. – The Trump administration begrudgingly released partial information on loan recipients of the Small Business Administration’s (SBA) Paycheck Protection Program (PPP), after months of growing public pressure to disclose who received funds and how taxpayer dollars were spent. The new data reveals more evidence of the PPP’s rampant mismanagement: this program intended to help small businesses has benefited large companies, special interests, and shockingly, states that we largely unharmed by the crisis when the aid was approved.

Know more about Russia than your friends:

Get our free ebook on how the Soviet Union became Putin's Russia.

Q2 2020 hedge fund letters, conferences and more

Einhorn’s FOF Re-positions Portfolio, Makes New Seed Investment In Year Marked By “Speculative Exuberance”

david einhorn, reading, valuewalk, internet, investment research, Greenlight Capital, hedge funds, Greenlight Masters, famous hedge fund owners, big value investors, websites, books, reading financials, investment analysis, shortselling, investment conferences, shorting, short biasIt has not just been rough year for David Einhorn's own fund. Einhorn's Greenlight Masters fund of hedge funds was down 3% net for the first half of 2020, matching the S&P 500's return for those six months. In his August letter to investors, which was reviewed by ValueWalk, the Greenlight Masters team noted that Read More

Trump Admin Is Trying To Hide Its Failure On PPP

“Trump’s poorly-designed PPP allowed $30 billion in taxpayer dollars to funnel to businesses and states that didn’t need it, and now the administration is trying to hide its failures by limiting information on who received funds,” said Kyle Herrig, president of Accountable.US. “This limited data drop is an affront to every worker and business owner whose world has been turned upside down by the economic fallout from this pandemic. The Trump administration can try to shroud its failure to protect workers, but it can’t hide the facts forever.”

Since the program’s inception, the PPP has been rife with corruption, cronyism, and incompetence — all to the detriment of small business owners who have had to lay off workers and shutter doors.

Today’s data release raises additional questions about how PPP was designed and implemented, including:

The $30,000,000,000 Question

The release does not include information on roughly $30 billion in loans that were returned. Why did the SBA approve loans for companies that evidently didn’t need funding, while so many other companies failed to secure funding? How much was only returned in the days following the administration’s decision to make basic loan information public?

More Aid To Least Impacted States

According to The New York Times, “Four states in the Great Plains — North Dakota and South Dakota, Nebraska and Kansas — all saw loan approvals of at least 90 percent of their eligible small business payroll, even though they rank among the least-affected states in terms of unemployment claims during the crisis. Two of the hardest-hit states for claims, New York and California, saw loan approvals equal to about three-quarters of their eligible payrolls; by that measure, California companies would have received billions more from the program if they had seen approvals at the same rate as the Plains states.” Why did states that were least affected by the virus have such a higher approval rate than the hardest hit states?

Accountable.US is a nonpartisan watchdog group that exposes corruption across all levels of government.