PPP’s Crazy Final Days | Inc.com

June 3, 2021June 1, 2021 ~ knjohn ~ Leave a comment

When the Small Business Administration shuttered the Paycheck Protection Program for all lenders other than community financial institutions earlier this month–three weeks before the forgivable loan program’s May 31 end date–it sent shock waves through the system.

Womply, a loan facilitator based in San Francisco, quickly rattled off a report noting that as many as 1.6 million of its small-business customers would be left out. Numerated, the Boston-based digital lending platform for banks, said it had $1.4 billion in outstanding applications from more than 33,000 businesses that had been started but not yet approved by the SBA. Meanwhile, other lenders worked to scuttle their programs and divert borrowers, even as it remained unclear how much money was actually left.

39 PPP Fraud Prosecutions So Far, and Counting | Small Business Trends

September 14, 2020 ~ knjohn ~ Leave a comment

Paycheck Protection Program (PPP) loans have aided more than 5 million small business owners, providing a much-needed lifeline during the Coronavirus outbreak crisis. The overwhelming majority of business owners are legitimate and will use the money as intended to retain employees and stay operational.

But the PPP program has attracted a few rotten apples. And you won’t believe how rotten they are.

To date, the Justice Department has filed 39 PPP fraud cases, charging about 56 defendants. Defendants are charged with bilking taxpayers out of tens of millions of dollars. Luckily, the Feds have recovered a large part of the loan proceeds already.

And what’s been recovered tells a wild tale.

Be Careful With Cares Act Taxes | Inc.com

June 4, 2020June 3, 2020 ~ knjohn ~ Leave a comment

With many businesses operating under constrained financial circumstances because of the coronavirus pandemic, finding available cash to pay current operating expenses can be difficult. Although the Coronavirus Aid, Relief and Economic Security Act (Cares Act) provides assistance to cover expenses such as payroll, rent, and insurance through both the Economic Injury Disaster Loan program and the Paycheck Protection Program, many businesses are finding that these sources of funding aren’t adequate to meet their current needs and they are facing a cash shortfall.