![]() "Based on our initial findings, I have asked the (Small Business Administration and its Office of Inspector General) to conduct further investigation into these companies and pursue all appropriate remedies, and I have informed DOJ that some of our findings may warrant its attention. “We must learn from this inexcusable misconduct to erect guardrails that will help ensure that federal programs - including emergency assistance programs in future crises - are administered more effectively, efficiently, and equitably while keeping waste, fraud, and abuse to an absolute minimum," Clyburn said in his statement on the report. The report explained how borrowers, including criminals, created fake companies to apply for loans based on fictitious employee counts and salaries, and the automated reviews by fintech companies would grant approvals.Ĭlyburn said he wants the report to lead to better care of federal money. "On top of the windfall obtained by enabling others to engage in PPP fraud, some of these individuals may have augmented their ill-gotten gains by engaging in PPP fraud themselves."īlueacorn's activities were highlighted in that report, as were Prestamos and Capital Plus, two lenders who worked with the company. "Even as these companies failed in their administration of the program, they nonetheless accrued massive profits from program administration fees, much of which was pocketed by the companies’ owners and executives," Clyburn said in a prepared statement. ‘Waste, fraud, abuse’: GOP lawmaker says House committee will investigate COVID spending How to contact Blue Acorn PPP LLC customer support at phone number Call or write an email to resolve Blue Acorn PPP LLC issues. ![]() Starting in 2021, startup fintech companies like Blueacorn were allowed to participate in the program.įintech companies took up a leading role in the program, which eventually issued $800 billion in forgivable loans to companies with fewer than 500 workers. While lenders were responsible for underwriting and processing loans, for which they earned commissions of 1-5% depending on the size, they also relied on agents like those listed in the report to handle much of the work, including reviewing an applicant's qualifications. But the report asserts fintech companies that processed applications perpetuated the fraud and sought to blame the Small Business Administration while earning hundreds of millions in fees for themselves. That tens of billions of aid dollars meant to help businesses retain workers during the pandemic were issued to ineligible companies is not new - the committee previous l y identified about $84 billion in potentially fraudulent loans. James Clyburn, D-S.C., released the incriminating report Thursday that alleges the companies intentionally approved high-dollar loans ahead of those meant to assist small mom-and-pop businesses and directed workers to ignore signs when applications were blatantly fraudulent. The Select Subcommittee on the Coronavirus Crisis, chaired by Rep. A congressional panel is recommending several tech and lending companies be investigated for fraud for the way they processed billions of dollars in Paycheck Protection Program loans, including a Phoenix-based startup co-founded by a former television newscaster.
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