A new CBS report out this week highlights a growing trend of fraud in Trump’s Paycheck Protection Program (PPP), with recipients using taxpayer dollars meant to help small businesses keep the lights on and pay workers to instead purchase luxury goods for personal use.
Instances Of PPP Fraud
The Trump administration’s faulty design and lack of transparency allowed for rampant misuse and abuse of funds — and as time passes, more instances of PPP fraud are coming to light, with people using taxpayer money to purchase luxury items including a Harley Davidson motorcycle and a Lamborghini, among other non-payroll expenditures.
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“The lack of transparency in Trump’s Paycheck Protection Program is stunning. With billions of taxpayer dollars flowing to private enterprises with almost no oversight, it’s no surprise that the program is rife with fraud and abuse,” said Kyle Herrig, president of Accountable.US. “We need much more information about the PPP in order to see where the program's funds actually went instead of where they were supposed to go: to mom-and-pop business owners.”
The news follows reports yesterday that a panel of inspectors general has demanded that the Small Business Administration (SBA) release information on recipients of Trump’s Paycheck Protection Program (PPP) who received loans of $25,000 or more. The agency released a limited tranche of data on loan recipients who obtained assistance totaling $150,000 or more in early July and has released little new information since.
As cases of fraud continue to mount, it is essential that the SBA release information on:
- which companies have received PPP funds since July 6, 2020 (and for how much);
- which loans are approved for forgiveness;
- how is loan forgiveness being decided; and
- how exactly funds distributed through the PPP were used.
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