The Biden administration, in a March memo, estimated EIDL and PPP fraud has totaled $84 billion to date. Numerous federal entities and civil servants have been empowered to investigate. Organizations should expect an increase in enforcement and prepare accordingly.
On March 25, 2021, House Committee on Oversight and Reform Chairwoman Carolyn Maloney and the Select Subcommittee on the Coronavirus Crisis released a staff memo highlighting “new evidence” of the Trump Administration’s mismanagement of the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. The committee memo, which recognizes that these programs played a crucial role in helping small businesses during the pandemic, estimates that up to $84 billion in potentially fraudulent loans were made due to the “refusal” to implement “basic program controls” or safeguards.
Recipients of EIDL loans account for the vast majority of this potentially fraudulent activity. The SBA Office of Inspector General (OIG) flagged $79 billion in potential fraud from this program. Potential PPP fraud, meanwhile, accounted for roughly $4.6 billion.
The memo highlights key steps the Biden-Harris Administration and Democrats in Congress have taken to address the risk of EIDL and PPP fraud. These steps…
